Burnaby traders makes four products in a single facility. Following information regarding products is given: Product A B C D Selling Price per Unit $35.30 $30.20 $20.80 $26.00 Variable Manufacturing Cost per Unit $16.50 $15.80 $7.90 $8.50 Variable Selling Cost per Unit $3.80 $1.60 $1.90 $3.30 Milling Machine Minutes per Unit 3.20 1.80 2.20 2.50 Monthly Deman in Units 4,000 1,000 3,000 1,000 Maximum minutes on all machines (22,600) Required: 1) How many minutes of milling machine time would be required to satisfy demand for all four products? 2) Which product makes the LEAST profitable use of the milling machines? 3) Which product makes the MOST profitable use of the milling machines?
Question 9.3
Burnaby traders makes four products in a single facility. Following information regarding products is given:
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|
Product |
|||
|
|
A |
B |
C |
D |
|
Selling Price per Unit |
$35.30 |
$30.20 |
$20.80 |
$26.00 |
|
Variable |
$16.50 |
$15.80 |
$7.90 |
$8.50 |
|
Variable Selling Cost per Unit |
$3.80 |
$1.60 |
$1.90 |
$3.30 |
|
Milling Machine Minutes per Unit |
3.20 |
1.80 |
2.20 |
2.50 |
|
Monthly Deman in Units |
4,000 |
1,000 |
3,000 |
1,000 |
|
Maximum minutes on all machines (22,600) |
|
|
|
|
Required:
1) How many minutes of milling machine time would be required to satisfy demand for all four products?
2) Which product makes the LEAST profitable use of the milling machines?
3) Which product makes the MOST profitable use of the milling machines?
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