Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For units of blades for table saws and hand saws, use commas as needed (i.e. 1,234). Part A: If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profit increase if 200 more hours of machine time can be obtained? [HINT - You should convert the hours to minutes.] 1. What is the contribution margin per the constrained resource for table saw blades? 2. What is the contribution margin per the constrained resource for handsaw blades? 3. Given the answers to the first two questions, which product gets all of the additional 200 hours? Your answer is either "Table Saw Blades" or "Handsaw Blades" - capital first letters and no quotes. Please note:
Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For units of blades for table saws and hand saws, use commas as needed (i.e. 1,234). Part A: If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profit increase if 200 more hours of machine time can be obtained? [HINT - You should convert the hours to minutes.] 1. What is the contribution margin per the constrained resource for table saw blades? 2. What is the contribution margin per the constrained resource for handsaw blades? 3. Given the answers to the first two questions, which product gets all of the additional 200 hours? Your answer is either "Table Saw Blades" or "Handsaw Blades" - capital first letters and no quotes. Please note:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35.
*PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For units of blades for table saws and hand saws, use commas as needed (i.e. 1,234).*
**Part A:** If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profit increase if 200 more hours of machine time can be obtained? [HINT - You should convert the hours to minutes.]
1. What is the contribution margin per the constrained resource for table saw blades? __________ .
2. What is the contribution margin per the constrained resource for handsaw blades? __________ .
3. Given the answers to the first two questions, which product gets all of the additional 200 hours? __________ . *Please note: Your answer is either "Table Saw Blades" or "Handsaw Blades" - capital first letters and no quotes.*
4. How much will profit increase if 200 more hours of machine time can be obtained? __________ .
**Part B:** If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made? [HINT - You should convert the hours to minutes.]
1. Given the 5,000 available hours, how many handsaw blades should Power Corp. make? __________ .
2. Given the 5,000 available hours, how many table saw blades should Power Corp. make? __________ .](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e1977ae-bab2-45cd-ad9b-1bdaf8cd8b26%2F33c1fab9-3a41-4785-ba1c-79d1ed5e8d3f%2Fn3shxx_processed.png&w=3840&q=75)
Transcribed Image Text:Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35.
*PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For units of blades for table saws and hand saws, use commas as needed (i.e. 1,234).*
**Part A:** If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profit increase if 200 more hours of machine time can be obtained? [HINT - You should convert the hours to minutes.]
1. What is the contribution margin per the constrained resource for table saw blades? __________ .
2. What is the contribution margin per the constrained resource for handsaw blades? __________ .
3. Given the answers to the first two questions, which product gets all of the additional 200 hours? __________ . *Please note: Your answer is either "Table Saw Blades" or "Handsaw Blades" - capital first letters and no quotes.*
4. How much will profit increase if 200 more hours of machine time can be obtained? __________ .
**Part B:** If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made? [HINT - You should convert the hours to minutes.]
1. Given the 5,000 available hours, how many handsaw blades should Power Corp. make? __________ .
2. Given the 5,000 available hours, how many table saw blades should Power Corp. make? __________ .
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education