Green Front Furniture manufactures a high-quality dining table, which is offered in both oak and walnut. The

Question:

Green Front Furniture manufactures a high-quality dining table, which is offered in both oak and walnut. The demand for the tables is 800 units for the oak table and 1500 for the walnut table. The tables are priced at $495 and $995 for the oak and walnut tables, respectively. The materials cost is $210 for the oak table and $430 for the walnut table. In addition, Green Front has the following manufacturing information for the four manufacturing processes (receiving, preparation, assembly, and finishing), showing the amount of time (in minutes) required for each table for each process, and the total minutes of time available for each process.

Time per unit Name Oak Walnut Available Time Receiving 25 50 100000 250000 Preparation 80 120 Assembly 100 250 400000 Fi


a. Which processes, if any, are constraints for the current level of demand?
b. Given any constraints identified in part (a) above, determine the best production and sales plan for the two types of tables.
c. What is the overall contribution from the production plan you determined in part (b) above?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-1337270595

14th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

Question Posted: