10 Corp makes three products; X, Y and Z. The bottleneck (constraint) in the production process is time required on corps cutting machine. The amount of time each product requires is shown below:

• Product X - 1.5 hours per unit
• Product Y - 0.5 hours per unit
• Product Z - 1.0 hours per unit

To maximize profits under the constrained resource, the order in which Corp should focus its manufacturing efforts is first Product Z, then Product Y, and finally Product X.If the demand for each of the products is 400 units, and Corp has 750 hours of cutting machine time, how many units of each of the products should Dinno make to maximize profits?

a.Product XProduct YProduct Z

0 units75units400units

b.Product XProduct YProduct Z

100 units400 units400 units

c.Product XProduct YProduct Z

400units400units400units

d.Product XProduct YProduct Z

0 units0 units400units

15Garcia Company makes and sells trophies for sports competitions. Each trophy regularly sells for $60 and the per-unit costs to make the trophies are provided below.

• Direct materials$10
• Direct labor$6
• Manufacturingoverhead$15

Garcia has received a request to make a special order for 50 trophies for an upcoming competition, which would not disrupt sales to its existing customers. Garcia determines that 40% of the manufacturing overhead costs are fixed and will not be affected by the special order, while 60% are variable costs related to making the trophies. Additionally, Garcia will need to purchase a special tool to assemble these trophies that costs $300 and will have no use for anything other than this special order.

What is the lowest price Garcia should charge in order to accept the special order?

a.$31 per trophy

b.$33 per trophy

c.$24 per trophy

d.$27 per trophy

2Jordan Corporation produces Products X and Y from a single input in a joint production process. Total joint processing costs are $200,000.

Product XProduct YUnits produced2,0002,500Per unit sales value at split-off$48.00$52.00Per unit sales value if processed further$55.00$70.00Total costs to process further$20,000$38,000

Based on the information above, which of the products should be processed further?

a.Product XProduct YNoYesb.Product XProduct YYesNoc.Product XProduct YYesYesd.Product XProduct YNoNo