2eSlide # 3820
80
400
60
000RDHere direct labor hours is the sole scarce resource.Urban should make all deluxe umbrellas.We can use the general rule for one-constraint problems.R: CM/DL hr = $20/2DL hrs = $10/DL hrD: CM/DL hr = $66/6DL hrs = $11/DL hrOptimal plan is R=0
D=20
000. Total contribution margin = $66 x 20
000 = $1
320
000Q5: Constrained Resource Decisions(Two Products; One Scarce Resource)