Company produces and sells four products: A, B, C, and D. The following data relate to its four products: A B C D Daily demand in units 90 50 80 70 Selling price per unit $80 $110 $120 $100 Direct material per unit $15 $35 $30 $25 Direct labor per unit $18 $25 $20 $30 Fixed cost per unit $20 $10 $18 $28 Other variable cost per unit $5 $5 $5 $5 Labor time in minutes per unit 10 20 15 12 There are total of 2,700 minutes available per day. University Company Uses the traditional method for scarce resource maximization. Problem 5.3 How many units of product D should be produced each day?
Company produces and sells four products: A, B, C, and D. The following data relate to its four products: A B C D Daily demand in units 90 50 80 70 Selling price per unit $80 $110 $120 $100 Direct material per unit $15 $35 $30 $25 Direct labor per unit $18 $25 $20 $30 Fixed cost per unit $20 $10 $18 $28 Other variable cost per unit $5 $5 $5 $5 Labor time in minutes per unit 10 20 15 12 There are total of 2,700 minutes available per day. University Company Uses the traditional method for scarce resource maximization. Problem 5.3 How many units of product D should be produced each day?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company produces and sells four products: A, B, C, and D. The following data relate to its four products:
| A | B | C | D | |
| Daily demand in units | 90 | 50 | 80 | 70 |
| Selling price per unit | $80 | $110 | $120 | $100 |
| Direct material per unit | $15 | $35 | $30 | $25 |
| Direct labor per unit | $18 | $25 | $20 | $30 |
| Fixed cost per unit | $20 | $10 | $18 | $28 |
| Other variable cost per unit | $5 | $5 | $5 | $5 |
| Labor time in minutes per unit | 10 | 20 | 15 | 12 |
There are total of 2,700 minutes available per day.
University Company Uses the traditional method for scarce resource maximization.
Problem 5.3
How many units of product D should be produced each day?
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