a. | X-1 | X-2 | X-3 | |||||
Price per unit | 100 | 200 | 400 | |||||
Less:Variable cost per unit | 50 | 120 | 240 | |||||
Contribution margin per unit | a | 50 | 80 | 160 | ||||
Machine hours per unit | b | 1 | 2.5 | 4 | ||||
Contribution margin per machine hour | a/b | 50 | 32 | 40 | ||||
Rank | 1 | 3 | 2 |
First Preference should be given to X-1 | |||||
Total hours available=500000 hours | |||||
Demand for X-1=300000 units | |||||
Machine hours per unit=1 | |||||
Machine hours used for X-1=300000*1=300000 hours | |||||
Balance machine hours available=500000-300000=200000 | |||||
Second Preference should be given to X-3 | |||||
Demand for X-3=20000 units | |||||
Machine hours per unit=4 | |||||
Machine hours used for X-3=20000*4=80000 hours | |||||
Balance machine hours available=200000-80000=120000 | |||||
last Preference should be given to X-2 | |||||
Machine hours per unit=2.5 | |||||
Units of X-2 can be produced=120000/2.5=48000 | |||||
X-1 | 300000 | units | |||
X-2 | 48000 | units | |||
X-3 | 20000 | units | |||
b. | Maximum amount payable=20*Contribution margin per hour for product with unfulfilled demand (X-2)=20*32=$ 640 | ||||
c. | First Preference should be given to X-1 | ||||
Total hours available=300000 hours | |||||
Demand for X-1=300000 units | |||||
Machine hours per unit=1 | |||||
Machine hours used for X-1=300000*1=300000 hours | |||||
Balance machine hours available=300000-300000=0 | |||||
Second Preference should be given to X-3 | |||||
Maximum amount payable=20*Contribution margin per hour for product with unfulfilled demand (X-3)=20*40=$ 800 | |||||
d. | Capacity that is no longer a bottleneck=Machine hour which fulfills the demand of all products | ||||
Capacity: | |||||
Demand | Machine hours per unit | Total machine hours | |||
a | b | a*b | |||
X-1 | 300000 | 1 | 300000 | ||
X-2 | 150000 | 2.5 | 375000 | ||
X-3 | 20000 | 4 | 80000 | ||
Total | 755000 | ||||
Capacity=755000 machine hours | |||||
! Required information Problem 4-75 and 4-76 (Static) (LO 4-4,5) [The following information applies to the...
Required information The following information applies to the questions displayed below.) Clarke Corporation manufactures three products (X-1, X-2, and X-3) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow. 164 $ Price per unit Variable cost per unit Machine hours per unit Maximum units demand per period 1.0 380,000 264 141 2.5 182,000 528 304 4.0 68,000 The single machine used for all three products has a maximum capacity of 818,000...
Required information [The following information applies to the questions displayed below.] Clarke Corporation manufactures three products (X-1, X-2, and X-3) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow. X-1 X-2 X-3 Price per unit $ 128 $ 228 $ 456 Variable cost per unit $ 64 $ 132 $ 268 Machine hours per unit 1.0 2.5 4.0 Maximum units demand per period 335,000 164,000 41,000 The single machine used for...
Required information [The following information applies to the questions displayed below.) Clarke Corporation manufactures three products (X-1, X-2, and X-3) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow. Price per unit Variable cost per unit Machine hours per unit Maximum units demand per period X-1 $ 168 $ 84 1.0 385,000 X-2 268 142 2.5 184,000 X-3 $ 536 $ 308 4.0 71,000 The single machine used for all three...
Required Information The following information applies to the questions displayed below) Clarke Corporation manufactures three products (X-1. X-2 and X-3) utilizing in one of the processes, o single machine for all products. Data on the individual products follow. $ Price per unit Variable cost per unit Machine hours per unit Maximum units demand per period 4.0 340,000 166,888 44,660 The single machine used for all three products has a maximum capacity of 658,000 hours per period Required: a. How many...
Needing Help with b and c. Required information [The following information applies to the questions displayed below.] Clarke Corporation manufactures three products (X-1, X-2, and X-3) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow. X-1 X-2 X-3 Price per unit $156 $256 $512 Variable cost per unit $78 $139 $296 Machine hours per unit 1.0 2.5 4.0 Maximum units demand per period 370,000 178,000 ...
Required information [The following information applies to the questions displayed below.] Clarke Corporation manufactures three products (X-1, X-2, and X-3) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow. X-1 $ 112 $ 56 1.0 315,000 Price per unit Variable cost per unit Machine hours per unit Maximum units demand per period X-2 $ 212 $ 128 2.5 156,000 $ $ X-3 424 252 4.0 29,000 The single machine used for...
The following information applies to the questions displayed below.] Clarke Corporation manufactures three products (X-1, X-2, and X-3) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow. X-1 X-2 X-3 Price per unit $ 160 $ 260 $ 520 Variable cost per unit $ 80 $ 140 $ 300 Machine hours per unit 1.0 2.5 4.0 Maximum units demand per period 375,000 180,000 65,000 The single machine used for all three...
Required: a. How many units of each product should be produced each period? b. A local engineering firm has suggested to Clarke that it might be able to increase the capacity on the machine. What is the maximum Clarke would be willing to pay for an increase of twenty (20) machine hours? c. Suppose the maximum capacity on the machine was 354,000 hours (instead of 618,000 hours). What is the maximum Clarke would be willing to pay for an increase...
Clarke Corporation manufactures three products (X-1, X-2, and X-3) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow. X-1 X-2 X-3 Price per unit $ 160 $ 260 $ 520 Variable cost per unit $ 80 $ 140 $ 300 Machine hours per unit 1.0 2.5 4.0 Maximum units demand per period 375,000 180,000 65,000 The single machine used for all three products has a maximum capacity of 798,000 hours per...
Clarke Corporation manufactures three products (X-1, X-2, and X-3) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow. X-1 X-2 X-3 Price per unit $ 148 $ 248 $ 496 Variable cost per unit $ 74 $ 137 $ 288 Machine hours per unit 1.0 2.5 4.0 Maximum units demand per period 360,000 174,000 56,000 The single machine used for all three products has a maximum capacity of 738,000 hours per...