Snow, Inc. makes three kinds of snowboards, but it has limited number of machine hours available to make them. Product line data are as follows:                                                           Wood                    Plastic                   Graphite Machine hours per unit                     1.25                 1.0                          1.5 Selling price per unit                         P100                  P120                      P200 Variable mfg. cost per unit                   45                      50                         100 Variable selling cost per unit                15                     26                           36                                                        In what order should the snowboard product lines be produced? Wood, Plastic, then Graphite Plastic, Graphite, then Wood Graphite, Wood, then Plastic none of the above

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Snow, Inc. makes three kinds of snowboards, but it has limited number of machine hours available to make them. Product line data are as follows:

                                                          Wood                    Plastic                   Graphite

Machine hours per unit                     1.25                 1.0                          1.5

Selling price per unit                         P100                  P120                      P200

Variable mfg. cost per unit                   45                      50                         100

Variable selling cost per unit                15                     26                           36                                                       

In what order should the snowboard product lines be produced?

  1. Wood, Plastic, then Graphite
  2. Plastic, Graphite, then Wood
  3. Graphite, Wood, then Plastic
  4. none of the above

 

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