Avocado Ltd Produces Small Electronic Components for Kitchen Appliances

Avocado Ltd produces small electronic components for kitchen appliances.Two of its products are Component Y and Component Z.The selling price of Component Y is $15,and the selling price of Component Z is $20.The variable cost per unit for Component Y is $8 and the variable cost per unit of Component Z is $11.The machine hour requirement and demand for the two products are:
Both Component Y and Component X have to undergo the machining process first,followed by a manual polishing labour process.Avocado Ltd's capacity is 6500 machine hours and 6500 labour hours.The top priority of Avocado Ltd in terms of managing constraints is:

A) Increase advertising to stimulate greater demand for Component Z
B) Train employees to improve productivity in relation to polishing
C) Invest in additional machines
D) Lower the price of Component Y to simulate demand

Correct Answer:

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