Vork centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to naximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C ells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in th able. Work Center W X Y Z A 6 9 4 10 Processing Time (min/unit) B с 1 3 10 4 3 12 7 0 Using the traditional method, what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)? OA. 80A, 80B, 60C, 80D OB. 71 A, 80B, 80C, 80 D OC. 80A, 72B, 80C, 80D OD. 80A. 80B. 80C. 70D D 12 8 9 11

Vork centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to naximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C ells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in th able. Work Center W X Y Z A 6 9 4 10 Processing Time (min/unit) B с 1 3 10 4 3 12 7 0 Using the traditional method, what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)? OA. 80A, 80B, 60C, 80D OB. 71 A, 80B, 80C, 80 D OC. 80A, 72B, 80C, 80D OD. 80A. 80B. 80C. 70D D 12 8 9 11

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...

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Question

Please do not give solution in image format thanku

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to
maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C
sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the
table.
Work Center
W
X
Y
Z
A
6
9
4
10
Processing Time (min/unit)
B
C
1
3
10
3
0
4
12
7
Using the traditional method, what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
OA. 80A, 80B, 60C, 80D
OB. 71 A, 80B, 80C, 80 D
OC. 80A, 72B, 80C, 80D
O D. 80A, 80B, 80C, 70D
D
12
8
9
11

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