Bluebell Ltd is a small company making gadgets. Two models are made: E_bell and D_bell. Both products require the same skilled labour which is limited. Information/data: E_bell D_bell Selling Price £150 £190 Variable Costs £110 £120 Direct labour hours per unit 4 6 Hours Direct labour hours available (per week) 900 Hours Maximum demand 100 140 Fixed overheads (per week) £4,000 If products can be sold up-to their max demand. Recommend the best production plan to maximise the use of the limited resource and maximise profit.

Bluebell Ltd is a small company making gadgets. Two models are made: E_bell and D_bell. Both products require the same skilled labour which is limited. Information/data: E_bell D_bell Selling Price £150 £190 Variable Costs £110 £120 Direct labour hours per unit 4 6 Hours Direct labour hours available (per week) 900 Hours Maximum demand 100 140 Fixed overheads (per week) £4,000 If products can be sold up-to their max demand. Recommend the best production plan to maximise the use of the limited resource and maximise profit.

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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Information/data:		E_bell	D_bell
Selling Price			£150	£190
Variable Costs			£110	£120
Direct labour hours per unit		4	6	Hours
Direct labour hours available (per week)	900	Hours
Maximum demand		100	140
Fixed overheads (per week)		£4,000