Austin Enterprises makes and sells two types of phones. Management is trying to determine the most profitable mix. Sales prices, demand and use of manufacturing inputs follows:
Sales Price:
Standard | Premium |
$400 | $540 |
Input requirements per unit:
Direct Material | $20 | $40 |
Direct labor (hours) | 1.2 | 2.0 |
Machine Hours | 1.5 | 1.0 |
Costs:
Variable Costs
Direct Labor (cost per hour) | 25 |
Factory Overhead(per MH) | 3 |
Marketing (percent of sales price) | 10% |
Fixed Costs:
Manufacturing | $230,000 |
Marketing | 80,000 |
Administration | 120,000 |
The company faces the following constraints
Minimum Production Demand (Units) | 1,000 | 1,000 |
Machine Hours (MH) | 5,000 | |
Direct Labor Hours | 4,000 |
What Sales mix will optimize profits?
What is the profit at this level of sales?
Use Solver for Constraints. Please show each step
The model is shown below
The formulas shown below
The solver parameters shown below
The result is shown below. Optimum sales mix is 1665 standard and 1501 premium units. The maximum profit is 668550.5.
Austin Enterprises makes and sells two types of phones. Management is trying to determine the most...
Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales pric demand, and use of manufacturing inputs follow. Basic $ Classic 77 9,000 $ Formal 190 26,000 16,000 Sales price Maximum annual demand (units) Input requirement per unit Direct material Direct labor 0.5 yards 0.8 hours 0.3 yards 3 hours 0 .6 yards 9 hours Costs Variable costs Materials Direct labor Factory overhead Marketing Annual fixed costs Manufacturing Marketing Administration...
Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow. Basic Classic Formal Sales price $ 28 $ 65 $ 190 Maximum annual demand (units) 30,000 20,000 40,000 Input requirement per unit Direct material 0.4 yards 0.2 yards 0.5 yards Direct labor 0.6 hours 2 hours 7 hours Costs Variable costs Materials $ 23 per yard Direct labor $ 19 per hour...
Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow. $ Basic 35 21,000 Classic $ 67 14,000 Formal $ 180 31,000 Sales price Maximum annual demand (units) Input requirement per unit Direct material Direct labor 0.5 yards 0.8 hours 0.3 yards 2 hours 0.6 yards 6 hours $ Costs Variable costs Materials Direct labor Factory overhead Marketing Annual fixed costs Manufacturing...
Austin Enterprises makes and sells three types of dress shirts Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing out how Basic Classic Formal Sales price $ 32 $ 60 $ Maximum annual demand (units) 160 22.000 12,000 32,000 Input requirement per unit Direct material 0.7 yards 0.8 yards Direct labor 0.9 hours 2 hours 7 hours 0.5 yards Cosi Variable costs Materials Direct labor Factory overhead Annual feed costs Manufacturing Marketing Administration...
Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow. Basic Classic Formal Sales price $ 32 $ 80 $ 195 Maximum annual demand (units) 19,000 12,000 29,000 Input requirement per unit Direct material 0.5 yards 0.3 yards 0.6 yards Direct labor 0.9 hours 3 hours 8 hours Costs Variable costs Materials $ 19 per yard Direct labor $ 15 per hour...
Please answer step E prices, demand, and use of Austin Enterprises makes and sels three types of dress shirts. Management is trying to determine the most proftable mix Sales follow Basic Classic $ 38 18,000 $ 200 28,000 S 70 Sales price Maximum annual demand (units) Input requirement per unit 1,000 Direct material Direct labor 0.7 yards 05 yards 0.8 yards 8 hours 09 hours 2 hours Costs Variable costs Materia s Direct labor Factory overhead $ 18 per yard...
austin enterprises makes and sells three types of dress shirts D. 1 D. 2 E. Saved Help Save Problem 4-71 (Algo) Optimum Product Mix (LO 4-4) Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices demand, and use of manufacturing inputs follow. $ Basic 36 24,000 $ Classic 70 14,000 $ Formal 180 34,000 Sales price Maximum annual demand (units) Input requirement per unit Direct material Direct labor...
Peter S. John's enterprises creates and sale 3 kinds of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow: Basic Classic Formal Sales price $ 38 $ 66 $ 185 Maximum annual demand (units) 22,000 15,000 32,000 Input requirement per unit Direct material 0.6 yards 0.2 yards 0.5 yards Direct labor 0.8 hours 2 hours 7 hours Costs Variable costs Materials $ 22 per yard Direct labor $ 18...
E8-25A (book/static) Question Help TreadFast produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that Treadfast could use all of its available machine hours producing either model. The two models are processed through the same production department. E: (Click the icon to view the data.) What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Prepare...
Can you please help me with this managerial accounting problem? GetFit produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that GetFit could use all of its available machine hours producing either model. The two models are processed through the same production department. (Click the icon to view the data.) What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours...