Ptarmigan Company produces two products. Product A has a contribution margin of $20 and requires 4 machine hours. Product B has a contribution margin of $18 and requires 3 machine hours. Determine the most profitable product assuming the machine hours are the constraint. Contribution margin per machine hour: Product A $fill in the blank 1 Product B $fill in the blank 2 Product is the most profitable.

Ptarmigan Company produces two products. Product A has a contribution margin of $20 and requires 4 machine hours. Product B has a contribution margin of $18 and requires 3 machine hours. Determine the most profitable product assuming the machine hours are the constraint. Contribution margin per machine hour: Product A $fill in the blank 1 Product B $fill in the blank 2 Product is the most profitable.

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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Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
Ptarmigan Company produces two products. Product A has a contribution margin of $44.00 and requires 8 machine hours. Product B has a contribution margin of $67.20 and requires 12 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places. Contribution margin per machine hour: Product A $ Product B $ Product is the most profitable.
Ptarmigan Company produces two products. Product A has a contribution margin of $209.00 and requires 10 machine hours. Product B has a contribution margin of $124.20 and requires 6 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places. Contribution margin per machine hour: Product A $fill in the blank 1 Product B $fill in the blank 2 Product is the most profitable.
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?
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $400 and $800, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 400 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. Objective function: Max Z = $400 A + $800 B Subject to: fill in the blank 1 A + fill in the blank 2 B ≤ fill in the blank 3 2. Identify the optimal amount that should be produced of each machine part. If none of the components should be produced, enter "0" for your answer. Component A fill in the blank 4 units Component B fill in the blank 5 units Identify the total contribution margin associated with this mix.$fill in the blank 6
requires 13 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places. Contribution margin per machine hour: Product A Product B is the most profitable. Product
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
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Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per Unit Fixed Costper Unit DL Hoursper Unit A $ 4.00 $ 1.00 $ 2.00 2 B $ 3.50 $ 0.50 $ 2.00 2 C $ 6.00 $ 2.00 $ 3.00 3 The objective function for a linear program to maximize contribution margin from the set of three products is: Multiple Choice Z = $3A + $2.50B + $5C. Z = A + B + C. Z = A + $0.50B + $2C. Z = $3A + $3B + $4C. Z = $4A + $3.50B + $6C.
The following information applies to the products of Stuart Company. Product A Product B Selling price per unit $ 14 $ 12 Variable cost per unit 11 8 Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately.Required One unit of Product A requires 1 hour of labor to produce, and one unit of Product B requires 4 hours of labor to produce. Due to labor constraints, demand is higher than the company’s capacity to make both products. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 13,000 units and 12,000 units, respectively. The maximum number of machine hours available is 41,000. Product A uses 3 machine hours, and Product B uses 5 machine hours. The company can sell all the…
The Wester Corporation produces three products with the following costs and selling prices: Product A B C Selling price per unit $ 21 $ 12 $ 32 Variable cost per unit $ 11 $ 7 $ 18 Fixed cost per unit $ 5 $ 3 $ 9 Direct labor hours per unit 0.4 0.1 0.7 Machine hours per unit 0.2 0.5 0.2 The company has insufficient capacity to fulfill all of the demand for these three products. If machine hours are the constraint, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is:
ABC Company has limited number of machine hours that it can use for manufacturing two products, A and B. each product has a selling price of P160 per unit but product A has 40% contribution margin and Product B has 70% contribution margin. One unit of B takes twice as many machine hours to make as a unit of A. assume either product can be sold in whatever quantity produced, which product(s) should the limited number of machine hours be used for? Product A Product B Both Products A and B Either Product A or Product B Group of answer choices 1 2 3 4