Mathematics · Limiting Factor Analysis
Emily Co produces three components: C1, C2, and C3. All three are processed on a single specialized machine limited to 4,000 hours per month. The data is given below: FeatureC1C2C3Variable Cost to Make ($/unit)$15$2025 ExternalPurchasePrice(/unit)$24$3238 Machine Hours per unit 2.0 2.5 3.0 Monthly Demand (units) 1,000 1,000 1,000 Following the principles of limiting factor analysis to minimize total costs, in what order should the components be prioritized for INTERNAL manufacture?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1C2, then C3, then C1
- 2C2, then C1, then C3✓
- 3C3, then C1, then C2
- 4C1, then C2, then C3
Correct answer
C2, then C1, then C3
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