Rosie's Company has three products, P1, P2, and P3. The maximum Rosie's can sell is 82,000 units of P1, 75,000 units of P2, and 63,000 units of P3. Rosie's has limited production capacity of 60,000 hours. It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5.00 for the P1, $15.00 for the P2, and $25.00 for the P3. What is the most profitable sales mix for Rosie's Company?
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- 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. 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?Rosie’s Company has three products, P1, P2, and P3. The maximum Rosie’s can sell is 72,000 units of P1, 45,000 units of P2, and 33,000 units of P3. Rosie’s has limited production capacity of 30,000 hours. It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie’s Company? Multiple Choice 138,000 P1, 45,000 P2, 33,000 P3. 29,700 P1, 45,000 P2, 138,000 P3. 138,000 P1, 41,000 P2, 138,000 P3. 31,500 P1, 41,000 P2, 33,000 P3. 29,700 P1, 46,000 P2, 29,700 P3.Crane Company uses 9000 units of Part A in producing its products. A supplier offers to make Part A for $5. CraneCompany has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the relevant cost of buying Part A from the supplier is $72000. $45000. $27000. $0.
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