Blossom, Incorporated, is a small company that manufactures three versi Unit information for its products follows: Sales price Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Required number of labor hours Required number of machine hours 50,000 units 30,000 units 20,000 units Show Transcribed Text Table A $ 45 3 8 1 3 4 0.50 4.00 Table B $ 49 9 3 4 0.50 2.50 Blossom has determined it can sell a limited number of each table in the upcoming year. Expected demand for each model follows: Table A Table B Table C Required: Table C $ 63 10 1.00 2.00 7 3 4 Required: 1. Suppose direct labor hours have been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3. 2. If Blossom has only 45,000 direct labor hours available, calculate the number of units of each table Blossom should produce to maximize its profit. 3. Suppose the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3. 4. If Blossom has only 237,000 machine hours available, calculate the number of units of each table Blossom should produce to maximize its profit.
Blossom, Incorporated, is a small company that manufactures three versi Unit information for its products follows: Sales price Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Required number of labor hours Required number of machine hours 50,000 units 30,000 units 20,000 units Show Transcribed Text Table A $ 45 3 8 1 3 4 0.50 4.00 Table B $ 49 9 3 4 0.50 2.50 Blossom has determined it can sell a limited number of each table in the upcoming year. Expected demand for each model follows: Table A Table B Table C Required: Table C $ 63 10 1.00 2.00 7 3 4 Required: 1. Suppose direct labor hours have been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3. 2. If Blossom has only 45,000 direct labor hours available, calculate the number of units of each table Blossom should produce to maximize its profit. 3. Suppose the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3. 4. If Blossom has only 237,000 machine hours available, calculate the number of units of each table Blossom should produce to maximize its profit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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