Question

Elxrri, Inc., Inxiwll ccrrpany that runutucturex thareses version est utics totales. Unit Internation for its products follows: DELALE variable manusDeLuxing overhead Vixed manufacturing overhead Recuirea number of labor hour Regulad number of machine hour 3.00 Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model : TA Rust * Roqueiros 1. Suppose that clirect labor hours has been identified as the bottleneck resource. Determine how BIOS som should prioritize prociviction by rank ordering the products from 1 to 3 2. If Doom hAonly 40.000 direct Intor hours Avallatles, calculate the number of unit est ench tables that com should produces to 3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3 4. It Dorsom han only 2222.000 machine hour AVAllable. Calculate the number of unit of mach table that norom should produce to Txirlae Itx prostit. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize Productiothst dank Ordering the products identifitas Produet Ranking Table A Tate B Tabloc If Blossom has only 40,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.) Product Units Produced Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. Ranking Product Table A Table B Tablec If Blossom has only 233,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.) Product Units Produced

Answer 1

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Blossom
Answer 1
Contribution margin per labor hour	Table A	Table B	Table C	Note
Selling price per unit	41.00	45.00	54.00	H
Less: Variable cost per unit
Direct materials	7.00	8.00	9.00
Direct labor	1.00	3.00	7.00
Variable Overhead	2.00	2.00	2.00
Variable cost per unit	10.00	13.00	18.00	I
Contribution per unit ($)	31.00	32.00	36.00	J=H-I
Labor hour per unit	0.50	0.50	1.00	K
Contribution margin per labor hour	62.00	64.00	36.00	L=J/K
Rank	2	1	3

Answer 2

Maximum Contribution margin

As labor hour is a constraint so for optimal utilization of labor hours that product will be produced first whose contribution margin per labor hour is highest.

So Table B should be produced first as its contribution margin per labor hour is highest.

Production plan:
Labor hours available		40,000.00
Demand for Table B	30,000.00
Labor hours for Table B		15,000.00
Labor hours available		25,000.00
Demand for Table A	50,000.00
Labor hours for Table A		25,000.00
Labor hours available		-

Final Answer
Product	Units
Table A	50,000.00
Table B	30,000.00
Table C	-

Answer 3
Contribution margin per labor hour	Table A	Table B	Table C	Note
Contribution per unit ($)	31.00	32.00	36.00
Machine hour per unit	4.00	2.50	2.00	K
Contribution margin per machine hour	7.75	12.80	18.00	L=J/K
Rank	3	1	2

Answer 4

Maximum Contribution margin

As Machine hour is a constraint so for optimal utilization of Machine hours that product will be produced first whose contribution margin per Machine hour is highest.

So Table B should be produced first as its Contribution margin per Machine hour is highest.

Production plan:
Machine hours available		233,000.00
Demand for Table B	30,000.00
Machine hours for Table B		75,000.00
Machine hours available		158,000.00
Demand for Table C	20,000.00
Machine hours for Table C		40,000.00
Machine hours available		118,000.00
Machine hours per unit of Table A		4.00
Number of units of Table A		29,500.00

Final Answer
Product	Units
Table A	29,500.00
Table B	30,000.00
Table C	20,000.00