A factory manufactures three products, A, B, and C. Each product requires the use of two machines,Machine I and Machine II. The total hours available, respectively, on Machine I and Machine Il per month are7,050 and 10,100. The time requirements and profit per unit for each product are listed below.ABCMachine I 6 8 9Machine II 9 8 16Profit$9 $15 $18How many units of each product should be manufactured to maximize profit, and what is the maximumprofit?Set up the linear programming problem, with A, B, and C representing the number of units of each productthat are produced.Maximize P= =subject to:$ 7,050≤ 10,100

ABCMachine I689Machine II9816Profit $9$15$18

How many units of each product should be manufactured to maximize profit, and what is the maximum profit? Set up the linear programming problem, with A, B, and C representing the number of units of each product that are produced.

How many units of each product should be manufactured to maximize profit, and what is the maximum profit? Set up the linear programming problem, with A, B, and C representing the number of units of each product that are produced.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are influenced by a cost driver . Cost drivers are the factors…

Q: Which of the following is called minimum point of production at which total cost is recovered:…

A: The margin of safety sales is calculated as difference between current sales and break even sales.

Q: nother cost-based approach to pricing is called time and material pricing. Under this approach, two…

A: Answer: Some companies--partiicularly in service industries-- use a variiation of cost and pricing…

Q: a) Complete the following table: [Calculate Marginal Physical Product, Average Fixed Costs, Average…

A: A cost is an expense incurred in the production or sale of a product or the preparation of an asset…

Q: 6. What the effect of JIT Systems on Product Costing?

A: Just-in-time, or JIT, is a technique of inventory management or control in which labor, materials,…

Q: ABC systems get more accurate as more activities are identified and analyzed. Critique the following…

A: The statement "A company should look to break its production process into as many activities as…

Q: The cost driver for demand creation activity is: a. Value of materials stored b. Number of orders c.…

A: Cost driver: A cost driver is the root cause of a cost and total cost is incurred by its effect.

Q: ent should focus its sales and production efforts on the product or products that will provide the…

Q: calculate unit manufacturing costs

A: How to Calculation unit manufacturing cost.

Q: What does it mean to have a fixed cost? What's this? How much does it all end up costing? Describe…

A: Introduction: Costs are the costs that a company incurs when it is in operation. It includes the…

Q: Define incremental cost, opportunity cost, and sunk cost. How do these costs impact decision-making?…

A: Incremental Cost: Incremental cost is the additional cost incurred to produce one additional…

Q: o alternatives for prod

A: The two alternatives for product costing systems are job costing and process costing. Job Costing:…

Q: atch each item with the correct statement below. A process that answers the question "How many…

A: The question is based on the concept of Cost Accounting

Q: Give me an example How Efficient are Graphic Techniques - Scatter Charts for Estimating Costs?

A: Meaning of Scatter Graph Method Scatter graph method is a graphical technique of separating fixed…

Q: What real-world company do you think would use activity-based costing? Why?

A: Activity-based costing is a method that is used to identify the activities in an entity and assigns…

Q: Need help to calculate the production cost per unit

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Identify the flow of cost in manufacturing firm step by step and how it is related to prime costand…

A: Costs Cost is the amount expended on any particular product or amount related to a specific product.…

Q: What are the different types of cost?

A: Costs refer to any expenditure done by a business or a firm in the process of production of a…

Q: Which of the following is the best example of a product-level activity? Select one: O a. Painting a…

A: Product-level-activity: These activities are done related to specific products irrespective of how…

Q: 2) What is measured along the horizontal axis in a graph of the production possibility frontier?…

A: The Measured along the Horizontal Axis in a graph of the production possibility frontier is as…

Q: . Designing a new product is an example of: a. Unit-level activity b. Batch-level activity…

A: Activity based costing is a type of costing system in which all indirect costs or overheads are…

Q: As a cost accounting manager, how can I ascertain the cost of production of product?

A: 1. Understand the production process: The first step to accurately ascertaining the cost of…

Q: What is the process of calculating the net present value of the Multi-Tasking machine center…

A: NPV is a method that helps companies to evaluate the capital budgeting projects and tells the…

Q: Why do most companies use normal or standard costing? After all, actual costing gives the actual…

A: The standard costing is a costing system that is used to estimate the expenses of the production…

Q: The internal cost analysis process involves the following in what order? (A) Identify the links…

A: Internal cost analysis used for analysing value creating process and opportunity to reduce its cost…

Q: Explain manufacturing cycle time.

A: Definition: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: In producer theory we talked the idea of a production function. a) Using this concept, explain an…

A: a) A production is solely a technical concept. The production function reveals how much output will…

Q: In your own words, explain the difference between absorption costing and variable costing methods.…

A: Absorption costing: Its also called as Full costing.

Q: s in a joint-cost m the number COS

A: Given: To explain the situation of joint cost and an example as,

Q: tandard cost systems provide companies with a number of advantages, argue the statement.

Q: 1. Planning is a function that involves ? 2. Product costs are costs that are a neccessary and…

A: Hi! There are two questions given, but we are entitled to solve only one question at a time so I…

Q: Describe the following approaches to pricing new products: skimming pricing, penetration pricing,…

A: Pricing decisions: Pricing decisions is one of the most important and required decision for the…

Q: What are the stages in Product Life Cycle (PLC) of an product and define skimmimg pricing strategy.

A: Product life cycle defines the stages of an product with its various phases. Skimming is an pricing…

Q: Which costing system would be more efficient when direct materials and direct labor costs are high,…

A: There are mainly two types costing method Traditional costing Activity based costing

Q: Cost-estimating relationships (CER) have been defined that allow design variables (like speed,…

A: a cost estimating relationship (CER) is a technique used to estimate a particular cost or price by…

Q: What are the primary goals of lean manufacturing?

Q: Explain how increasing production can increase gross profit when using absorption costing.

A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting Principles…

Q: The PERT is combined with cost data to produce a PERT cost analysis to a. calculate the total…

A: Cost analysis: It refers to the process of breaking down the total costs into various elements to…

Question

A factory manufactures three products, A, B, and C. Each product requires the use of two machines,
Machine I and Machine II. The total hours available, respectively, on Machine I and Machine Il per month are
7,050 and 10,100. The time requirements and profit per unit for each product are listed below.
AB
C
Machine I 6 8 9
Machine II 9 8 16
Profit
$9 $15 $18
How many units of each product should be manufactured to maximize profit, and what is the maximum
profit?
Set up the linear programming problem, with A, B, and C representing the number of units of each product
that are produced.
Maximize P= =
subject to:
$ 7,050
≤ 10,100

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Given Data

VIEW

Step 2: Equation to maximize profit

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Can you provide samples/examples of tasks for developing the costing and profitability model for a new product? Should include the following: o A table showing the list of the parameters used in your model o A breakdown of the expected production costs and profitability o Calculation of the NPV of expected sales/ profitability o A sensitivity analysis that accounts for changes in any three (3) parameters of your model. o At least two trade-off rules you developed for your product development
Please choose a company which produces more than one product. Take at least two of these products and discuss the different costs between these two products which may make one more profitable than the other.
Which of the following is a resource constraint? 1. machine hours available 2. sales commissions 3. cost per unit 4. budgeted overhead
Combine the different component costs to determine the firm’s WACC.
Explain how activity-based costing systems can provide more accurate product costs than traditional cost systems. Give explanation in details with example
What is the purpose of cost allocation in terms of economic decisions, motivation and justifying costs? Answer in 250 words.
Which of the following correctly describes the term cost driver? a.The primary factor which is correlated with the amount of cost incurred to produce a product b.The total material, labor, and overhead cost of a completed job c.The inflation rate which causes costs to rise d.The initial purchase price of direct materials
Which of the following is a benefit of activity-based cost management system? a.It makes it easy to identify the overall activities that bear an influence on cost. b.It is inexpensive. c.It enhances strategic planning. d.It ensures allocation of all costs on the basis of machine hours.
Which analysis involves a comparison of the cost of operating additional robotic tailors with additional revenues generated by increased product sales?
Describe three different ways in which managers determine cost behavior, which do you think is most accurate? How can you visualize cost behavior and why is this important?
Give the general formula for a mixed cost. What does each term represent? Provide an example of a product or service with a mixed cost.
Which of the following statements is true? Select one: a. The most complex of the cost estimation methods is the high-low method. b. In approximating the cost function, the account analysis classifies costs based upon an industrial engineer's evaluation of production methods, and material, labor, and overhead requirements. c. The high-low method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. d. Engineering approach approximates cost function by classifying each account as either variable or fixed based on the analyst's knowledge of how the account behaves. e. The high-low method of deriving an estimated cost line uses all the data points