A company makes two products A and B, using a CNC milling machine which is classified as a single resource pool. The resource is available for 900 minutes per day. The contribution margins for product A and B are $20 and $35 per unit respectively. The unit loads are 10 and 20 minutes per unit. The company wishes to produce a mix of 60% As and 40% Bs. At the indicated product mix, what is the financial capacity (profit per day)? hint: find a weighted margin per unit, then, multiply it by the effective capacity found in previous question. **$1,508.43 per day **$1,899.03 per day **$1,671.42 per day **$1,775.32 per day
A company makes two products A and B, using a CNC milling machine which is classified as a single resource pool. The resource is available for 900 minutes per day. The contribution margins for product A and B are $20 and $35 per unit respectively. The unit loads are 10 and 20 minutes per unit. The company wishes to produce a mix of 60% As and 40% Bs. At the indicated product mix, what is the financial capacity (profit per day)? hint: find a weighted margin per unit, then, multiply it by the effective capacity found in previous question. **$1,508.43 per day **$1,899.03 per day **$1,671.42 per day **$1,775.32 per day
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...
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A company makes two products A and B, using a CNC milling machine which is classified as a single resource pool. The resource is available for 900 minutes per day. The contribution margins for product A and B are $20 and $35 per unit respectively. The unit loads are 10 and 20 minutes per unit.
The company wishes to produce a mix of 60% As and 40% Bs. At the indicated product mix, what is the financial capacity (profit per day)?
hint: find a weighted margin per unit, then, multiply it by the effective capacity found in previous question.
**$1,508.43 per day
**$1,899.03 per day
**$1,671.42 per day
**$1,775.32 per day
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