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1 . Jason Company manufactures three products: J , K , and L . The demand for each product is 1 0 0 units. The
Jason Company manufactures three products: J K and L The demand for each product is units. The selling price, variable costs, and contribution margin for one unit of each product follow:
Product J K L
Selling price $ $ $
Total variable expenses
Contribution margin $ $ $
Number of simulations
needed per unit of product
Jason buys a simulation service from outside. The cost per simulation is $ And the simulation cost for each product is included in the total variable expenses given above.
The number of simulations that can be purchased is limited
Further assume that Jason can buy Product K from a supplier and resell it The purchase price of K would be $ per unit.
Required: In what order which product first, second, and third? does the company have to make the products? Further assume that Jason has used alll available simulations provided by the exsisting simulation service company. Jason has found that a new simulation service company that can provide additional simulations for a substantial premium price.
If Jason needs additional simulations only for Product K what is the maximum price per simulation that Jason is willing to pay to the new simulation service company?
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