Unformatted text preview: Part 3 The new optimal product mix within part 3 was 25,000 units of AWS and 12,500 units of retail. The restraints that are now binding is the restraint that we must produce at least 25,000 units of AWS. The new total revenue figure is 225,000 dollars witch is the least amount of out of the three parts but I believe that the manager is ok with this change because Amazon believes that AWS is going to be the main revenue stream in the near future so although the total revenue went down they are investing in AWS now because it will cause an increase in sales of AWS in the future. You would have to change the per unit revenue of AWS a whole 7 dollars to have it be 12 dollars per-unit revenue for AWS to cause a change with the optimal product mix. No matter how much you increase the per-unit revenue for retail it will never change the optimal product mix because the current optimal product mix is already at the minimum...
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- Spring '14