Which product to make when materials run short
When one material is short, make the product that earns the most for each unit of it. Rank three candles by contribution per kilogram of wax.
Task 1When one resource runs short2 questions
Larkfield Candles now makes three candles. In October its wax supplier can deliver only 1,400 kg of wax.
A limiting factor is a resource that is too short to make everything customers want. Here it is wax. First check how much wax full demand would need.
| Candle | Selling price | Variable cost | Wax in one | Demand |
|---|---|---|---|---|
| Tealight set | 9.00 | 5.00 | 200 g | 1,000 |
| Jar candle | 15.00 | 6.00 | 500 g | 2,000 |
| Large jar | 24.00 | 10.00 | 1,000 g | 500 |
There are 1,000 grams in a kilogram.
Task 2Contribution for each kilogram of wax3 questions
You pick the right answer, work out a figure and put steps in order.
Task 3The best plan for the wax3 questions
You work out a figure.