Mohawk Corp. makes four products. The Table 10A.3 below shows the key data for these four products.
Question:
Mohawk Corp. makes four products. The Table 10A.3 below shows the key data for these four products.
Currently, Mohawk is making 300 units of Product C. The throughput per unit is
$4.50 × 8 minutes per unit = $36. A customer wants to make a special offer for an additional 300 units, at a reduced price. If Mohawk accepts the order, it will receive total throughput per unit on the items in the special order of $28 per unit.
A. Compute the throughput per minute on the additional 300 units.
B. Compute the constraint utilization for the 300 additional units.
C. Compute the incremental throughput from these 300 additional units.
D. Compute the reduction in throughput from Product D that will be required to make room for these extra 300 units of Product C.
E. Compute the net change in profits from accepting the special order.
Step by Step Answer:
Introductory Accounting A Measurement Approach For Managers
ISBN: 9781138956216
1st Edition
Authors: Daniel P. Tinkelman