Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Question No. 7: Production under Constrained Resources Glover Company makes three products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Product A B C $ 35.10 $ 51.60 $ 58.00 22.50 25.10 15.90 2.30 1.70 1.60 12.20 7.80 8.40 $ 72.10 $ 86.20 $ 83.90 C. A Product B C Mixing minutes per unit 1.30 0.80 Selling price per unit $81.00 $ 103.40 $96.90 Variable selling cost per unit $ 2.90 $ 3.40 $ 3.20 Monthly demand in units 3100 4400 2400 The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes are available per month on these machines. Direct labor is a variable cost in this company. 0.20 Required: a. How many minutes of mixing machine time be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? A B C Optimal production Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?

Question No. 7: Production under Constrained Resources Glover Company makes three products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Product A B C $ 35.10 $ 51.60 $ 58.00 22.50 25.10 15.90 2.30 1.70 1.60 12.20 7.80 8.40 $ 72.10 $ 86.20 $ 83.90 C. A Product B C Mixing minutes per unit 1.30 0.80 Selling price per unit $81.00 $ 103.40 $96.90 Variable selling cost per unit $ 2.90 $ 3.40 $ 3.20 Monthly demand in units 3100 4400 2400 The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes are available per month on these machines. Direct labor is a variable cost in this company. 0.20 Required: a. How many minutes of mixing machine time be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? A B C Optimal production Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
Question No. 7: Production under Constrained Resources Glover Company makes three products in a single facility. These products have the following unit product Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Mixing minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A Product $ $ B $ 35.10 $ 51.60 $ 58.00 25.10 15.90 22.50 2.30 1.70 1.60 7.80 8.40 $ 72.10 $ 86.20 $ A Product B C 81.00 $ 2.90 $ 3100 0.30 0.20 103.40 $ 96.90 3.40 S 3.20 4400 2400 The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes ar available per month on these machines. Direct labor is a variable cost in this company. Required: 83.90 C C a. How many minutes of mixing machine time be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? A B Optimal production Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?
Transcribed Image Text:Question No. 7: Production under Constrained Resources Glover Company makes three products in a single facility. These products have the following unit product Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Mixing minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A Product $ $ B $ 35.10 $ 51.60 $ 58.00 25.10 15.90 22.50 2.30 1.70 1.60 7.80 8.40 $ 72.10 $ 86.20 $ A Product B C 81.00 $ 2.90 $ 3100 0.30 0.20 103.40 $ 96.90 3.40 S 3.20 4400 2400 The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes ar available per month on these machines. Direct labor is a variable cost in this company. Required: 83.90 C C a. How many minutes of mixing machine time be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? A B Optimal production Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS