Glowbright Company makes three types of long-burning scented candles. The models vary in terms of size and type of materials (fragrance, decorations, etc.). Unit information for Glowbright follows:

Glowbright has determined that it can sell a limited number of each candle in the upcoming year. Expected demand for the three models follows:

Required:

1. Suppose that disease in the suppliers’ hives has severely restricted the production of bees¬ wax. Thus, beeswax has been identified as a constrained resource with a maximum of 41,000 pounds available per year. Assuming an unlimited demand for each of Glowbright’s products, determine the company’s preferred production. Justify your answer.

2. If the number of pounds of beeswax is the only constrained resource, determine the number of units of each candle that Glowbright should produce to maximize its profit.

3. Suppose that the number of labor hours has been identified as the only constrained resource with a maximum of 104,000 hours available per year. Assuming an infinite demand for each of Glowbright’s products, determine the company’s preferred production. Justify your answer.

4. If the number of labor hours is the only constrained resource, determine the number of units of each candle that Glowbright should produce to maximize its profit.

Transcribed Image Text:

Candle X Candle Y Candle Z Sales price $15.00 $18.00 $23.00 Direct materials 2.00 1.75 2.25 Direct labor 2.00 4.00 8.00 Variable manufacturing overhead 1.00 1.25 1.25 Fixed manufacturing overhead 2.00 2.00 2,50 Required number of pounds beeswax 1.0 1.50 1.75 Required number of labor hours 5.0 2.50 5.0