Maxitank makes two products. The costs of each product are:
|
Product R |
Product S |
|
|
€ |
€ |
|
|
Selling price |
12 |
20 |
|
Raw materials |
4 |
11 |
|
Production labour hours |
2 |
4 |
|
Machine hours |
4 |
3 |
Maxitank’s sales are limited by the machine capacity of the factory, which is the company’s bottleneck. Which of the two products should be produced first in order to maximize the throughput generated from the limited capacity?