FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Required: What if Fisher Company had 10 additional machine hours (cutting) with all other resources held constant? 

a. What is the associated total contribution margin? Round the units of A and B to two decimal places, and round intermediate calculations and your final answer to the nearest dollar.

b. What is the incremental benefit per machine hour caused by the additional ten hours, if any?

а.
A< 50
В 100
10A + 6B < 308
50
40
B< 40
6A + 10B < 300
30
E
4A + 10B < 400
F
50
100A
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Transcribed Image Text:а. A< 50 В 100 10A + 6B < 308 50 40 B< 40 6A + 10B < 300 30 E 4A + 10B < 400 F 50 100A
Constrained Optimization: Multiple Internal Constraints
Fisher Company produces two types of components for airplanes: A and B, with unit contribution margins of $400 and $600, respectively. The components pass through three sequential
processes: cutting, welding, and assembly. Data pertaining to these processes and market demand are given below (weekly data).
Resource
Resource Available Resource Usage (A) Resource Usage (B)
Cutting
300 machine hours
Six hours
Ten hours
Welding
308 welding hours
Ten hours
Six hours
Assembly
400 labor hours
Four hours
Ten hours
Market demand (A)
50
One unit
Zero units
Market demand (B)
40
Zero units
One unit
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Transcribed Image Text:Constrained Optimization: Multiple Internal Constraints Fisher Company produces two types of components for airplanes: A and B, with unit contribution margins of $400 and $600, respectively. The components pass through three sequential processes: cutting, welding, and assembly. Data pertaining to these processes and market demand are given below (weekly data). Resource Resource Available Resource Usage (A) Resource Usage (B) Cutting 300 machine hours Six hours Ten hours Welding 308 welding hours Ten hours Six hours Assembly 400 labor hours Four hours Ten hours Market demand (A) 50 One unit Zero units Market demand (B) 40 Zero units One unit
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