Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company currently has a shortage of machine hours since one of its two machines is down; only 360 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Variable cost per unit Machine hours per unit Demand (units) Large Mouth (Product A) $ 23.00 $ 12.50 0.75 348 Small Mouth (Product B) $9.00 $5.00 0.25 448 Mini Mouth (Product C) $ 29.00 $ 14.00 1 164 Required: a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced while the machine is down to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources?
Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company currently has a shortage of machine hours since one of its two machines is down; only 360 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Variable cost per unit Machine hours per unit Demand (units) Large Mouth (Product A) $ 23.00 $ 12.50 0.75 348 Small Mouth (Product B) $9.00 $5.00 0.25 448 Mini Mouth (Product C) $ 29.00 $ 14.00 1 164 Required: a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced while the machine is down to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company currently has
a shortage of machine hours since one of its two machines is down; only 360 hours are available this month. The selling prices, costs,
labor requirements, and demand for the three products are as follows:
Sales price
Variable cost per unit
Machine hours per unit
Demand (units)
Large Mouth (Product A)
$ 23.00
$ 12.50
0.75
348
Required A
Complete this question by entering your answers in the tabs below.
Small Mouth
(Product B)
$9.00
$5.00
0.25
448
Required:
a. In what order should Hydroflask prioritize production of the products?
b. How many of each product should be produced while the machine is down to maximize profit?
c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources?
Required B Required C
In what order should Pasadena prioritize production of the products?
< Required A
Mini Mouth
(Product C)
$29.00
$ 14.00
1
164
Required B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f832efa-b655-4686-9058-e21392a073f4%2F624e4b1b-fb07-44e7-8950-8d0728d7fe2b%2F2edgi1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company currently has
a shortage of machine hours since one of its two machines is down; only 360 hours are available this month. The selling prices, costs,
labor requirements, and demand for the three products are as follows:
Sales price
Variable cost per unit
Machine hours per unit
Demand (units)
Large Mouth (Product A)
$ 23.00
$ 12.50
0.75
348
Required A
Complete this question by entering your answers in the tabs below.
Small Mouth
(Product B)
$9.00
$5.00
0.25
448
Required:
a. In what order should Hydroflask prioritize production of the products?
b. How many of each product should be produced while the machine is down to maximize profit?
c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources?
Required B Required C
In what order should Pasadena prioritize production of the products?
< Required A
Mini Mouth
(Product C)
$29.00
$ 14.00
1
164
Required B >
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