Merton Truck

MERTON TRUCK COMPANY Sol 1 : Given : Selling Price od Model 101 truck : 39000 Selling Price of Model 102 truck : 38000 We know, Contribution C = SP – VC VC for Model 101 : Direct Material + Direct Labor + Variable Overhead : 24000 + 4000 + 8000 = $36000 VC for Model 102: Direct Material + Direct Labor + Variable Overhead : 20000+ 4500+8500 = $33000 Let no of Model 101 produced be X Let no of Model 102 produced be Y Z= (39000-36000)X + (38000=33000)Y Z=3000X + 5000Y So objective is to Maximize Z Constraints : 1| Engine Assembly | X + 2Y