The Gutuchi Company manufactures purses, shaving bags and backpacks. The construction includes leather and synthetics. Leather being the scarce raw material. The production process requires two types of skilled labor: sewing and finishing. The following table gives the availability of the resources, their usage by these products, and the profits per unit. The production manager at Gutuchi wishes to determine the production levels so that the company’s total revenue is maximized. ** Resource Required per Unit ** Resource: Purse Bag Backpack Daily Availability Leather (Sq. ft.) 2 1 3 42 Sewing (Hr.) 2 1 2 40 Finishing (Hr.) 1 0.5 1 45 Selling Price ($) 24 22 45

The Gutuchi Company manufactures purses, shaving bags and backpacks. The construction includes leather and synthetics. Leather being the scarce raw material. The production process requires two types of skilled labor: sewing and finishing. The following table gives the availability of the resources, their usage by these products, and the profits per unit. The production manager at Gutuchi wishes to determine the production levels so that the company’s total revenue is maximized. Resource Required per Unit Resource: Purse Bag Backpack Daily Availability Leather (Sq. ft.) 2 1 3 42 Sewing (Hr.) 2 1 2 40 Finishing (Hr.) 1 0.5 1 45 Selling Price ($) 24 22 45

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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	Resource Required per Unit
Resource:	Purse	Bag	Backpack	Daily Availability
Leather (Sq. ft.)	2	1	3	42
Sewing (Hr.)	2	1	2	40
Finishing (Hr.)	1	0.5	1	45
Selling Price ($)	24	22	45