Question

What is the profit for each of the following products?

W18PD:

H18PD:

W75CS:

H75CS:

H14PD:

W00RS:

Table 1. Products
Product	Description	Demand*	Wholesale Price
		(units)
W18PD	WIT 18 Amp Power Drill	??	62
H18PD	Houston 18 Amp Power Drill	??	60
W75CS	WIT 7.5” Circular Saw	??	81
H75CS	Houston 7.5” Circular Saw	??	69
H14PD	Houston 14 Amp Power Drill	??	56
W00RS	WIT Reciprocating Saw	??	75

Table 4. Raw Material Requirements and Warehouse Inventory Levels
Product	Polystyrene	Aluminum	Copper Wire	Machine Steel	Paint
	(lb.s)	(lb.s)	(feet)	(lb.s)	(gal.s)
W18PD	0.71	1.05	7.88	0.74	0.10
H18PD	1.14	0.50	10.10	0.71	0.10
W75CS	1.02	4.20	15.20	3.00	0.15
H75CS	1.81	2.91	11.99	2.08	0.16
H14PD	1.01	0.45	10.93	0.67	0.10
W00RS	0.84	0.48	18.53	0.83	0.13
Inventory on Hand	15600	15390	74400	12269	1523

Table 5. Raw Materials
Raw Material	Cost
Polystyrene (lb.)	0.23
Aluminum (lb.)	1.23
Copper Wire (foot)	0.34
Machine Steel (lb.)	2.52
Paint (gal.)	7.5

Table 6. Standard Costs
Product	Misc. Material	Variable Overhead	Labor	Shipping
W18PD	5.15	3.22	22.93	4.46
H18PD	3.35	3.22	22.35	4.41
W75CS	5.05	3.59	22.91	5.67
H75CS	4.15	3.22	20.02	5.45
H14PD	3.56	3.14	19.87	5.56
W00RS	4.95	3.5	23.79	5.67

Answer 1

Computation of Proft coach for each unit of each Proft Product Name Unit wholesale Total Cost por 1 (sales-Cost) 19.50 W 18po 14 is po (W.NO) 42.50 40.18 56.48 47.36 39.02 48.06 68.00 I 60.00 81.00 69.00 36.00 75.00 twiscs Harcs 21.64 16.93 woors computation of Proht for each product: (no demand is mention so, asstrand some no. of units produced and sold Portal Name Pohd @ und So 18 per band (6) CwNQI point 19.50 19.8L ey. 52 996 21.64 996 16.93 996 26.94 19,424.00 19,740.72 14 18 PD lware HATCS HIMPO 996 & 1553.44 16,862.28 26,836 Ry 118,832.60 SOORS

option @ in a frack total faw material with for highest poft then company can mother to prot is Hag Pollows / E Maximum unta Bon produce sold (w.nl = yols units x 26.94 = walking Notes o ir I computation of total cost per unit Product Name costs Misc. variable labor Motora overhead cost ☺ ☺ ☺ (6) shipping cost ☺ Raw entoril len cat pound unt (6) ( @) (0646404 kooscos. 3.82 HIO CD 3.35 3.82 Warcs sor 3.59 Harcs uur 3.24 TAMPD 3.56 3.14 WooRs 4.95 3.50 22.93 4.46 122.35 4.41 24.91 5.67 10 ors.us 19.87 5.56 123.79 5.67 6.74 6.85 19.26 14.52 694 10.15 42.00 40.16 56.48. 47.36. 39.07. 148.06.

working Note ③ Total Raw material Cost pes white Product Raw Material Cost pound Polystyrene Aluminum capper Machine Paint Totd wire sted RM [cleis) [clo.s) [cfecte) (((6.5) (galos) Gst x0.23] x 1.23] x0.34) X 256] x778 Brunit 5 WORD 0.16 IH LOPD 0.16 (Wases 0.23 Harcs 0.42 HI4eD 0.23 woors 10.19 1.29 0.62 5.17 3.58 0.55 0.59 2,68 1.86 3.43 1.79 .17 7.76 9.00 -5.24 3.72 1.69 6.50 2.09 0.25 o.ar 1.13 1 1.20 0.7 0.98 42.50 40.18. 56.48. 47.36 39.02 48.06.

Paint working alote ③ :- Product Polyster Aluni copper Machine 1 Name I-num were steel 16.s) Cl6.s) (feed) Clés) wlsle 0.71 1.05 7.88 0.74 tigPD 1.14 0.50 10.10 oal warcs 1.02 4.00 15.20 3.00 AaTCS 1.61 2.91 11.99 2.08 HIMPD 101o.ur 10.13 0.67 wooRS 0.84 0.48 18.53 0.83 Hrequired per al con " each produce 6.53 9.1974.63 8.03 Havailable Imanthry 15,600 15,390 24,400 12,269 (gol.s) 0.10 0.10 0.15 0.16 0.10 o.ba 0.24 1823. of units alkan produce 2388 1604 996 1927 20581 for each of Praduce fraction units not possible to produce, so only round off units should allowed to procluce) Cout of these leest is 996 il marmum units. can prochuce by each produce o 996 units) af total Intrid used for 18,571 kwGORS 32062 your 14,781 11,715