3. On-the-Move, Inc., manufactures two types of roof racks the Assembly Department. A total of 650 hours (39,000 min- for automobiles: BikeRac and KayakRac. Data concerning utes) is avalable per month in the Assembly Department; there selling prices and costs for each unit follow. are no other relevant constraints on production. What is the contribution per unit for BikeRacs? For KayakRacs? BikeRac KayakRac $100 26 Selling price. Materials (variable). . Direct labor (variable). Overhead (90% fixed). Gross margin Morketing costs (variable) . Administrative costs (fixed). Profit. $80 b At the required monthly levels of production (5,00O Bike- Racs and 2,000 KayakRacs). how many minutes are used in the Assembly Depertment? 23 50 40 C Suppose there is unlimited demand for BikeRacs and KayakRacs at current prices. What production schedule (number of BikeRacs and number of KayakRacs) should On-the-Move adopt to maximize profit while meeting its constraint to produce and sell at least 5,000 BikeRacs and 2,000 KayakRacs? $ 19 $ 13 4. Management decided that at least 5,000 BikeRacs and at least 2,000 KayakRacs must be manufactured and sold each d. Suppose demand is limited to 2,500 units of KayakRacs. What production schedule should On-the-Move adopt to maximize profit while meeting its constraint on the mini- mum levels for the two products? month. The company's production facilities are limited by machine capacity in the Assembly Department. Each BikeRac requires 6 minutes and each KayakRac requires 3 minutes in The solution to this question is at the end of the chapter
3. On-the-Move, Inc., manufactures two types of roof racks the Assembly Department. A total of 650 hours (39,000 min- for automobiles: BikeRac and KayakRac. Data concerning utes) is avalable per month in the Assembly Department; there selling prices and costs for each unit follow. are no other relevant constraints on production. What is the contribution per unit for BikeRacs? For KayakRacs? BikeRac KayakRac $100 26 Selling price. Materials (variable). . Direct labor (variable). Overhead (90% fixed). Gross margin Morketing costs (variable) . Administrative costs (fixed). Profit. $80 b At the required monthly levels of production (5,00O Bike- Racs and 2,000 KayakRacs). how many minutes are used in the Assembly Depertment? 23 50 40 C Suppose there is unlimited demand for BikeRacs and KayakRacs at current prices. What production schedule (number of BikeRacs and number of KayakRacs) should On-the-Move adopt to maximize profit while meeting its constraint to produce and sell at least 5,000 BikeRacs and 2,000 KayakRacs? $ 19 $ 13 4. Management decided that at least 5,000 BikeRacs and at least 2,000 KayakRacs must be manufactured and sold each d. Suppose demand is limited to 2,500 units of KayakRacs. What production schedule should On-the-Move adopt to maximize profit while meeting its constraint on the mini- mum levels for the two products? month. The company's production facilities are limited by machine capacity in the Assembly Department. Each BikeRac requires 6 minutes and each KayakRac requires 3 minutes in The solution to this question is at the end of the chapter
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please solve sub-division C and D with detailed explnation.
Transcribed Image Text:Self-Study Question
3. On-the-Move, Inc., manufactures two types of roof racks
for automobiles: BikeRac and KayakRac. Data concerning
selling prices and costs for each unit follow.
the Assembly Department. A total of 650 hours (39,000 min-
utes) is available per month in the Assembly Department; there
are no other relevant constraints on production.
What is the contribution per unit for BikeRacs? For
KayakRacs?
O.
BikeRac
KayakRac
Selling price.
Materials (variable).
Direct labor (variable)
Overhead (90% fixed).
Gross margin
Marketing costs (variable).
Administrative costs (fixed).
$100
$80
At the required monthly levels of production (5,000 Bike-
Racs and 2,000 KayakRacs), how many minutes are used
in the Assembly Depertment?
b.
26
23
4
50
40
Suppose there is unlimited demand for BikeRacs and
KayakRacs at current prices. What production schedule
(number of BikeRacs and number of KayakRacs) should
On-the-Move adopt to maximize profit while meeting its
constraint to produce and sell at least 5,000 BikeRacs
and 2,000 KayakRacs?
$ 19
$ 13
C.
4
10
Profit..
Management decided that at least 5,000 BikeRacs and at
least 2,000 KayakRacs must be manufactured and sold each
month.
d. Suppose demand is limited to 2,500 units of KayakRacs.
What production schedule should On-the-Move adopt to
maximize profit while meeting its constraint on the mini-
mum levels for the two products?
The company's production facilities are limited by
machine capacity in the Assembly Department. Each BikeRac
requires 6 minutes and each KayakRac requires 3 minutes in
The solution to this question is at the end of the chapter.
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