Dustin Co. makes three products, A, B and C. They have a constrained resource - machine...
26. Dell Corp. produces three products and is currently facing a labor shortage - only 20,000 hours are available this month. The selling price, costs, labor requirements, machine requirements and demand of the three products are as follows: A. In what order should Dell prioritize (rank from 1st choice to 3rd) production of the products? To determine priority you first determine what resource is constrained (in this case it is labor hours). Then calculate Unit Contribution Margin. Using unit contribution...
The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: Selling price per unit Variable cost per unit Minutes on the constraint WXKD $335.21 $228.49 $259.20 $173.02 7.80 4.60 FS $199.24 $159.55 5.80 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay...
Situation Three Rutro Corp. makes three products in a single facility. These products have the following unit product costs: Product A Product B Product C Direct material $32.00 $40.00 $42.00 Direct labor 22.00 20.00 16.00 Variable manufacturing overhead 6.00 8.00 15.00 Fixed manufacturing overhead 29.00 38.00 28.00 Unit cost $89.00 $106.00 $101.00 Additional data concerning these products are listed below: Product A Product B Product C Mixing minutes...
XYZ Company produces two products, A and B. For the coming period, 135,000 machine hours and 182,000 direct labor hours are available. Information on the two products appears below: contribution margin per unit ...... machine hours per unit ............... direct labor hours per unit ...... Product A $7.00 4.00 - 8.00 Product B $6.50 6.00 7.00 Calculate the number of units of Product B that should be produced in order to maximize net income.
XYZ Company produces two products, A and B. For the coming period, 135,000 machine hours and 182,000 direct labor hours are available. Information on the two products appears below: .... contribution margin per unit machine hours per unit .... direct labor hours per unit ..... Product A $7.00 4.00 8.00 Product B $6.50 6.00 7.00 Calculate the number of units of Product B that should be produced in order to maximize net income.
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 325.99 $ 543.25 $ 513.00 Variable cost per unit $ 251.99 $ 420.80 $ 397.65 Time on the constraint (minutes) 4.60 8.30 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in...
Dweeb Corp. makes three products in a single facility. These products have the following unit product costs: Product A Product B Product C Direct material $40.00 $35.00 $38.00 Direct labor 21.00 18.50 17.50 Variable manufacturing overhead 5.50 7.00 11.00 Fixed manufacturing overhead 35.00 36.00 31.00 Unit cost $101.50 $96.50 $97.50 Additional data concerning these products are listed below: Product A Product B Product C Mixing minutes per unit ...
Holton Company makes three products in a single facility. Data concerning these products follow: Product A B C Selling price per unit $ 150.90 $ 76.30 $ 170.90 Direct materials $ 65.60 $ 42.50 $ 102.80 Direct labor $ 47.20 $ 13.50 $ 30.80 Variable manufacturing overhead $ 9.00 $ 4.50 $ 14.30 Variable selling cost per unit $ 24.40 $ 3.30 $ 8.80 Mixing minutes per unit 43.30 4.00 4.00 Monthly demand in units 3,000 1,000 2,000 The mixing...
Holton Company makes three products in a single facility. Data concerning these products follow: Product A B C Selling price per unit $ 150.90 $ 76.30 $ 170.90 Direct materials $ 65.60 $ 42.50 $ 102.80 Direct labor $ 47.20 $ 13.50 $ 30.80 Variable manufacturing overhead $ 9.00 $ 4.50 $ 14.30 Variable selling cost per unit $ 24.40 $ 3.30 $ 8.80 Mixing minutes per unit 43.30 4.00 4.00 Monthly demand in units 3,000 1,000 2,000 The mixing...
Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per Unit Fixed Cost per Unit DL Hours per Unit A (Anchor bolts) $ 8.00 $ 2.00 $ 3.00 1 B (Bearings) $ 3.60 $ 2.60 $ 4.00 2 C (Castings) $ 8.00 $ 4.00 $ 1.00 4 There are 160 direct labor hours available. Machine-hour capacity allows 100 anchor bolts, only; 40 bearings, only; 60...