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a. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the product mix that yialds the highest total profil? (Enter your responses rounded to the nearest whole number.) A B Product mix 100 75 16 The total profit under the traditional method is $ 9810. (Enter your response rounded to the nearest whole number.) b. Using the botleneck-based method, what is the product mix that yiolds the highest tolal profil? (Round your answors to the nearest whole number and ignoro the violations on constraints duo to rounding.)

a. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the product mix that yialds the highest total profil? (Enter your responses rounded to the nearest whole number.) A B Product mix 100 75 16 The total profit under the traditional method is $ 9810. (Enter your response rounded to the nearest whole number.) b. Using the botleneck-based method, what is the product mix that yiolds the highest tolal profil? (Round your answors to the nearest whole number and ignoro the violations on constraints duo to rounding.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is delermined by giving resource priority to the highest contribution margin watercrafts. Davis Watercraft always has a contingent of 10 workers on hand; each worker is paid $25 per hour. Overhead costs are $38,000 per week. The plant operates 18 hours per day and 6 days per week. Labor is considered a fixed expense because workers are paid for their time regardless of their utilization. The production manager has delermined that workstation 1 is the bottleneck. Delailed production information is provided below. Model A B Price $495 $345 $525 Material costs $45 $35 $115 Weekly demand Processing Time Station 1 Processing Time Station 2 Processing Time Station 3 Processing Time Station 4 100 75 40 60 30 60 10 60 20 30 40 a. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the product mix that yields the highest total profil? (Enter your responses rounded to the nearest whole number.) A B Product mix 100 75 16 The total profit under the traditional method is $ 9810. (Enter your response rounded to the nearest whole number.) b. Using the bottleneck-based method, what is the product mix that yields the highest tolal profitl? (Round your answers to the nearest whole number and ignore the violations on constraints to rounding.) A B Product mix
Transcribed Image Text:The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is delermined by giving resource priority to the highest contribution margin watercrafts. Davis Watercraft always has a contingent of 10 workers on hand; each worker is paid $25 per hour. Overhead costs are $38,000 per week. The plant operates 18 hours per day and 6 days per week. Labor is considered a fixed expense because workers are paid for their time regardless of their utilization. The production manager has delermined that workstation 1 is the bottleneck. Delailed production information is provided below. Model A B Price $495 $345 $525 Material costs $45 $35 $115 Weekly demand Processing Time Station 1 Processing Time Station 2 Processing Time Station 3 Processing Time Station 4 100 75 40 60 30 60 10 60 20 30 40 a. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the product mix that yields the highest total profil? (Enter your responses rounded to the nearest whole number.) A B Product mix 100 75 16 The total profit under the traditional method is $ 9810. (Enter your response rounded to the nearest whole number.) b. Using the bottleneck-based method, what is the product mix that yields the highest tolal profitl? (Round your answers to the nearest whole number and ignore the violations on constraints to rounding.) A B Product mix
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