7. Application example

A small company has three products in its catalog: P1, P2, P3. These products are produced by 3 successive operations on three M1, M2, M3 machines, each with a capacity of 5,000 min over the period studied. The sales manager has a sales potential of 150 units of each product for this same period, which is occasionally higher than the available production capacity. The question is which product to sell first, bearing in mind that, for strategic reasons, a minimum of 25 units of each reference must be maintained on the market. To help with this decision, the management controller calculated the full cost of the products, based on the price of materials, manufacturing time and fixed overheads, which amounted to e30,000 for the period under review. He then deducted their margin (selling price – ) and profitability (margin/selling price). Product characteristics are presented in table...