Bexter Labs produces three products: A, B, and C. Bexter can sell up to 2000 units of Product A, up to 3000 units of Product B, and up to 5000 units of Product C. Each unit of Product C uses two units of A and three units of B and incurs $7 in processing costs. Products A and B are produced from either raw material 1 or raw material 2. It costs $9 to purchase and process one unit of raw materials. Each processed unit of raw material 1 yields two units of A and four units of B. It cost $5 to purchase and process Raw Material 2. Each processed unit of raw material 2 yields one unit of A and three units of B. The unit prices are: A,7; B,9; and C,6. The average quality level of the units sold must be at least 8. Determine how to maximize Bexter's profit.
Hints: Units of A and B available for sale is the units and A and B produced from raw materials minus what was used to produce C.
Set up quality constraint as total actual quality versus total required quality.
Homework Answers
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Bexter Labs produces three products: A, B, and C. Bexter can
sell up to 2000 units...
Calculate Unit Profit for each product (in cells B8:I8) and Total Profit (in cell B19) Calculate ...
Calculate Unit Profit for each product (in cells B8:I8) and
Total Profit (in cell B19)
Calculate total capacity required in Department 1 (overtime) in
cell B24 and Department 2 (regular and overtime) in cells
B25:B26
Calculate total units produced of each product family in cells
B28:B31.
Table 1 Product Table Floor Ceiling Pendant Material cost $66 85 50 80 Table 2 Regular Time Process Unit Cost $16 12 Capacity 100,000 90,000 Unit Cost 18 15 Capacity 25,000 24,000 Table 3...
Question 3 Tricycle Ltd produces three joint products, A, B and C. These products become identifiable...
Question 3 Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input 10 000 2 400 Additional...
DATA REVIEW VIEW FORMULAS AA Wrap Text FILE HOME INSERT PAGE LAYOUT Cut Calibri 11 Paste...
DATA REVIEW VIEW FORMULAS AA Wrap Text FILE HOME INSERT PAGE LAYOUT Cut Calibri 11 Paste Format Painter BIU.B. S Clipboard Font Copy E E Merge & Center 88 Conditional Format as Cell Formatting Table Styles Inse Alignment 041 X fx Production Cost Report: Weighted Average Method. Quality Confections Company manufactures chocolate bars in two processing departments, Mixing and Packaging, and uses the weighted average method for its process costing system. The table that follows shows information for the Mixing...
Benoit Company produces three products—A, B, and C. Dataconcerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):ProductABCSelling price$80$56$70Variable expenses:Direct materials24159Other variable expenses242740Total variable expenses484249Contribution margin$32$14$21Contribution margin ratio40%25%30%The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month.Required:1. Calculate the contribution margin per pound of the constraining resource for each product.2. Which orders would you...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 84.00 $ 66.00 $ 74.00 Variable expenses: Direct materials 25.20 18.00 9.00 Other variable expenses 25.20 31.50 42.80 Total variable expenses 50.40 49.50 51.80 Contribution margin $ 33.60 $ 16.50 $ 22.20 Contribution margin ratio 40 % 25 % 30 % The company estimates that it can sell 850 units of each product per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 85.00 $ 60.00 $ 82.00 Variable expenses: Direct materials 27.20 15.00 8.00 Other variable expenses 27.20 33.00 53.50 Total variable expenses 54.40 48.00 61.50 Contribution margin $ 30.60 $ 12.00 $ 20.50 Contribution margin ratio 36 % 20 % 25 % The company estimates that it can sell 850 units of each product per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 80 $ 56 $ 70 Variable expenses: Direct materials 24 15 9 Other variable expenses 24 27 40 Total variable expenses 48 42 49 Contribution margin $ 32 $ 14 $ 21 Contribution margin ratio 40 % 25 % 30 % The company estimates that it can sell 800 units of each product per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 72.00 $ 60.00 $ 62.00 Variable expenses: Direct materials 21.60 18.00 9.00 Other variable expenses 21.60 27.00 34.40 Total variable expenses 43.20 45.00 43.40 Contribution margin $ 28.80 $ 15.00 $ 18.60 Contribution margin ratio 40 % 25 % 30 % The company estimates that it can sell 1,000 units of each product per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 90.00 $ 52.00 $ 80.00 Variable expenses: Direct materials 27.00 15.00 12.00 Other variable expenses 27.00 24.00 40.00 Total variable expenses 54.00 39.00 52.00 Contribution margin $ 36.00 $ 13.00 $ 28.00 Contribution margin ratio 40 % 25 % 35 % The company estimates that it can sell 800 units of each product per month. The same...
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product А $88.00 $72.00 $78.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 26.40 26.40 52.80 $35.20 40% 18.00 36.00 54.00 $18.00 25% 9.00 45.60 54.60 $23.40 30% The company estimates that it can sell 900 units of each product per month. The same raw material is used in each product. The material costs $3...
Calculate Unit Profit for each product (in cells B8:I8) and
Total Profit (in cell B19)
Calculate total capacity required in Department 1 (overtime) in
cell B24 and Department 2 (regular and overtime) in cells
B25:B26
Calculate total units produced of each product family in cells
B28:B31.
Table 1 Product Table Floor Ceiling Pendant Material cost $66 85 50 80 Table 2 Regular Time Process Unit Cost $16 12 Capacity 100,000 90,000 Unit Cost 18 15 Capacity 25,000 24,000 Table 3...
Question 3 Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input 10 000 2 400 Additional...
DATA REVIEW VIEW FORMULAS AA Wrap Text FILE HOME INSERT PAGE LAYOUT Cut Calibri 11 Paste Format Painter BIU.B. S Clipboard Font Copy E E Merge & Center 88 Conditional Format as Cell Formatting Table Styles Inse Alignment 041 X fx Production Cost Report: Weighted Average Method. Quality Confections Company manufactures chocolate bars in two processing departments, Mixing and Packaging, and uses the weighted average method for its process costing system. The table that follows shows information for the Mixing...
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product А $88.00 $72.00 $78.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 26.40 26.40 52.80 $35.20 40% 18.00 36.00 54.00 $18.00 25% 9.00 45.60 54.60 $23.40 30% The company estimates that it can sell 900 units of each product per month. The same raw material is used in each product. The material costs $3...
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