Required: What if Fisher Company had 10 additional machine hours (cutting) with all other resources held constant? a. What is the associated total contribution margin? Round the units of A and B to two decimal places, and round intermediate calculations and your final answer to the nearest dollar.b. What is the incremental benefit per machine hour caused by the additional ten hours, if any? а.A< 50В 10010A + 6B < 3085040B< 406A + 10B < 30030E4A + 10B < 400F50100A Constrained Optimization: Multiple Internal ConstraintsFisher Company produces two types of components for airplanes: A and B, with unit contribution margins of $400 and $600, respectively. The components pass through three sequentialprocesses: cutting, welding, and assembly. Data pertaining to these processes and market demand are given below (weekly data).ResourceResource Available Resource Usage (A) Resource Usage (B)Cutting300 machine hoursSix hoursTen hoursWelding308 welding hoursTen hoursSix hoursAssembly400 labor hoursFour hoursTen hoursMarket demand (A)50One unitZero unitsMarket demand (B)40Zero unitsOne unit

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Required: What if Fisher Company had 10 additional machine hours (cutting) with all other resources held constant?

a. What is the associated total contribution margin? Round the units of A and B to two decimal places, and round intermediate calculations and your final answer to the nearest dollar.

b. What is the incremental benefit per machine hour caused by the additional ten hours, if any?

а.
A< 50
В 100
10A + 6B < 308
50
40
B< 40
6A + 10B < 300
30
E
4A + 10B < 400
F
50
100A

Constrained Optimization: Multiple Internal Constraints
Fisher Company produces two types of components for airplanes: A and B, with unit contribution margins of $400 and $600, respectively. The components pass through three sequential
processes: cutting, welding, and assembly. Data pertaining to these processes and market demand are given below (weekly data).
Resource
Resource Available Resource Usage (A) Resource Usage (B)
Cutting
300 machine hours
Six hours
Ten hours
Welding
308 welding hours
Ten hours
Six hours
Assembly
400 labor hours
Four hours
Ten hours
Market demand (A)
50
One unit
Zero units
Market demand (B)
40
Zero units
One unit

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