Diego makes and sells two products, RED and BLUE using the same machines. RED and BLUE have the following selling prices and variable costs per unit. Product RED Product BLUE Selling Price 5.00 7.50 Variable Costs 3.50 5.50 However, it takes one hour to produce one unit of Product REd, while it takes two hours to produce one unit of Product BLUE. (1) Determine the product's contribution margin per machine hour. (2) Which Product should be produced more?

Diego makes and sells two products, RED and BLUE using the same machines. RED and BLUE have the following selling prices and variable costs per unit. Product RED Product BLUE Selling Price 5.00 7.50 Variable Costs 3.50 5.50 However, it takes one hour to produce one unit of Product REd, while it takes two hours to produce one unit of Product BLUE. (1) Determine the product's contribution margin per machine hour. (2) Which Product should be produced more?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter13: Nonlinear Optimization Models

Section: Chapter Questions

Problem 4P: The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of...

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The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of production of product 1, and x2 represents units of production of product 2. Producing one unit of product 1 requires 4 labor-hours, and producing one unit of product 2 requires 6 labor-hours. Currently, 24 labor-hours are available. The cost of labor-hours is already factored into the profit function, but it is possible to schedule overtime at a premium of 5 per hour. a. Formulate an optimization problem that can be used to find the optimal production quantity of products 1 and 2 and the optimal number of overtime hours to schedule. b. Solve the optimization model you formulated in part (a). How much should be produced and how many overtime hours should be scheduled?
Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are $1 8840 how many units of each product will need to be sold in order forJj to break even?
Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below: TC GL NG Selling price per unit $ 494.40 $ 449.43 $ 469.68 Variable cost per unit $ 395.20 $ 320.21 $ 373.92 Minutes on the constraint 8.00 7.10 7.60 Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.)
A firm makes two products, Alpha and Beta. Alpha Beta Sales price per unit $7.00 $10.00 Variable cost per unit $4.00 $8.00 Demand 5,000 4,000 Machine hours used 5 2 The total available machine hours is 10,000. How many of Alpha should be in the product mix to maximize the profit?
Question 3. MALI Itd produces the following products: Products G U Total Contribution per unit Labour hours £10 £6 £4 5 1 Demand (units) 60 70 80 REQUIRED: (a) First calculate how many hours are needed to produce all products. (b) Second, provided that we are limited to 300 total hrs, how could you distribute the optimal quantity of hours. (c) How many products would you produce in each of them? (d) How could a company such as this with a short-term problem of staff shortages overcome this in the long-term?
Sheridan Company manufactures and sells two products. Relevant per unit data concerning each product follow. Selling price Variable costs Machine hours (a) Product Basic $42.0 $24.0 0.5 Deluxe $55.0 $29.4 x Your answer is incorrect. 0.8 Compute the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic 40 $ Deluxe 51 F
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 119.51 $ 226.07 $ 228.96 Variable cost per unit $ 89.87 $ 176.86 $ 178.92 Time on the constraint (minutes) 1.90 3.70 3.60 Required: A. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. B. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?
Example 3: Malak Company sells two products X and Y. More information follows: Selling price per unit variable cost per unit Sales mix common fixed costs Product X $100 $70 3 units of X are sold for each 2 units of Y $25,090 Product Y $200 $180 Required: 1. What is the overall contribution margin per unit?
Page 5 NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and of Bona is P2. The total fixed costs is P420,000. The selling price of Avon is P10 and Bona is P8. Compute for the following: a. Weighted contribution margin per unit b. Weighted contribution margin ratio. Round-off to 4 decimal places. c. Break-even point in units. d. Break-even point in sales e. Break-even point in pesos for Avon f. Break-even point in pesos for Bona.
ab. ock esc ~ Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000 tablets a year. The tablet information is as follows: Selling price per unit Direct material cost per unit Direct labor cost per unit Total unavoidable allocated overhead How much would Operating Income decrease if Microhard were to eliminate the tablets? DO NOT INCLUDE PARENTHESES OR NEGATIVE SIGNS IN YOUR ANSWER. Click Save and Submit to save and submit. Click Save All Answers to save all answers. ! 1 Q A @ 2 W S $60 $30 $10 $48,000 #M 3 E $ 4 D R % от оро 5 F MacBook Pro < 6 T G & of r 7 Y H * 00 つ

The constraint at Pickrel Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: 9. VD JT SM Selling price per unit Variable cost per unit Minutes on the constraint $344.85 $415.40 $119.32 $270.18 $310.88 $ 91.96 Sklpped 5.70 6.70 1.90 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your Intermedlate calculations to 2 declmal places.) Multiple Cholce JT, SM, VD JT. VD, SM VD, SM, JT SM, VD, JT Mc Graw < Prev 9 of 9 Next 68°F Mostly cloudy Type here to search DELL
The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: WX KD FS Selling price per unit Variable cost per unit $ 335.20 $ 259.22 $ 228.48 $ 173.04 $ 199.23 $ 159.57 Minutes on the constraint 7.70 4.50 5.70 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.)