Question

Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $100 and $60 respectively. Resource X can be hired at $50 per unit and resource Y at $20 per unit. The firm: Group of answer choices

Answer 1

Should hire both more of X and Y

Step-by-step explanation:

Material requirement planning(MRP) is a production planning system employed in resource management for manufacturing processes. From the above the company requires x and y resources which amount to $100 and $60 respectively. Since x and y resources each cost $50 and $20 respectively, the company can employ 2 units of X and 3 units of y capacity respectively.