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

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...
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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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