Question

PS poa Lie Around Fumiture manufactures two products Futons and Reciners. The following data are avalable Fudons Reciners Sales price Variable costs $500.00 $390 00 $710.00 $385 00 The company can manufachure either 3 utons per machine hour or 2 recinerfs) per machine hour. The company's production capacity is 3.900 machine OA 7,800 futons and 6 recliners O B 7800 recliners OC 11.700 futons OD. 11.700 futons and 7.800 reciners Click to select your ansawer Previous Next 8 0 B. 31

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

A. В D Е F G Н 1 Answer 2 The correct answer is B) 7800 recliners 3 4 5 Firstly we have to calculate the contribution margin per machine hour for bith the products 6 7 Futons 8 contribution margin per machine hour 9(500-390) 3 10$330 11 12 Recliners 13 contribution margin per machine hour 14 (710-385)*2 15 $650 16 17 Since the contribution margin per machine hour of recliner is more, so recliner should be produced 18 So the number of recliner to be produced 19 no. of hours*recliners per hour 20 3900*2 21 7800 recliners 22 23 So the correct answer is B) 7800 Units 24 LL