case study 914
David is determined to make $50,000 after tax. After listening to your advice, he makes a radical choice: discontinuing the production of Bock and Stout beers. Assume that David has conducted some market research that shows he will continue selling Ale and Pilsner beer at a ratio of 2 to 1. Given David’s current productive capacity, can he now achieve his goal? How many cases of Ale and Pilsner would he have to sell to reach his goal? Given the 2:1 sales mix and the available number of machine hours, what is the maximum after-tax profit David could attain using this strategy?
Based on the case study attached you have to solve this question and show calculation.
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