Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Question 4:
Ajloun Manufacturing Company makes three products in a single factory. These products
have the following selling prices and unit product costs:
Costs
Product B
$90 per unit S30 per unit S60 per unit
$35 per unit s10 per unit S20 per unit
$45 per unit S15 per unit S30 per unit
4 Minutes
Product C
Product A
Selling Price
Variable Manufacturing Costs
Fixed Manufacturing Costs
Tapping Machine Time
5 Minutes
2 Minutes
Fixed manufacturing costs are allocated to the three products. Demand for the three
products exceeds the company's productive capacity. The only tapping machine available
at the factory is used to produce the three products with only 40 hours of tapping machine
time available per week.
Required
As a Manager at the company, you are required to advice your CEO with a production plan
that the company should follow to meet the weekly demand?
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Transcribed Image Text:Question 4: Ajloun Manufacturing Company makes three products in a single factory. These products have the following selling prices and unit product costs: Costs Product B $90 per unit S30 per unit S60 per unit $35 per unit s10 per unit S20 per unit $45 per unit S15 per unit S30 per unit 4 Minutes Product C Product A Selling Price Variable Manufacturing Costs Fixed Manufacturing Costs Tapping Machine Time 5 Minutes 2 Minutes Fixed manufacturing costs are allocated to the three products. Demand for the three products exceeds the company's productive capacity. The only tapping machine available at the factory is used to produce the three products with only 40 hours of tapping machine time available per week. Required As a Manager at the company, you are required to advice your CEO with a production plan that the company should follow to meet the weekly demand?
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