Question

px Variable 0.5 4.0 250 20 Table B Table C 50,000 units 25,000 units 25,000 units Table A Table B Table C 2. If Blossom has only preferences; the product with first preference should be entered first.) 60.000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maxcimize its profit. (Enter the products in t O Type here to search

Answer 1

Answer 1.
	Table A	Table B	Table C
Selling Price	50.00	54.00	68.00
Variable Costs
Direct materials	10.00	11.00	12.00
Direct Labor	2.00	4.00	8.00
Variable Manufacturing Overhead	4.00	4.00	4.00
Total Variable Cost	16.00	19.00	24.00
Contribution Margin	34.00	35.00	44.00
Direct Labour Hour per Unit	0.50	0.50	1.00
Contribution Margin per Direct Labor Hour	68.00	70.00	44.00
Ranking	II	I	III
Answer 2.
Calculation of No of Units Produced by available Labor Hours:
	Quantity	Labor Hours per unit	Total Direct Labor	Balance of Direct Labor
Total Labor hours available				60,000
Table B Produced	25,000	0.50	12,500	47,500
Table A Produced	50,000	0.50	25,000	22,500
Table C Produced	22,500	1.00	22,500	-
Answer 3.
	Table A	Table B	Table C
Selling Price	50.00	54.00	68.00
Variable Costs
Direct materials	10.00	11.00	12.00
Direct Labor	2.00	4.00	8.00
Variable Manufacturing Overhead	4.00	4.00	4.00
Total Variable Cost	16.00	19.00	24.00
Contribution Margin	34.00	35.00	44.00
Machine Hour per Unit	4.00	2.50	2.00
Contribution Margin per Machine Hour	8.50	14.00	22.00
Ranking	III	II	I
Answer 4.
Calculation of No of Units Produced by available Machine Hours:
	Quantity	Machine Hours per unit	Total Direct Labor	Balance of Machine Hour
Total Machine hours available				242,000
Table C Produced	25,000	2.00	50,000	192,000
Table B Produced	25,000	2.50	62,500	129,500
Table A Produced	32,375	4.00	129,500	-