Question
1-Prepare a financial analysis that clearly shows how many units of each product Company GHI should produce each month to maximize its profitability. Your analysis
1-Prepare a financial analysis that clearly shows how many units of each product Company GHI should produce each month to maximize its profitability. Your analysis should show how many units of each product the company should produce, how many total DLH it should use for each product, and what the total expected contribution margin would be if that production schedule is followed. Show all your work
2-In what order should Company GHI manufacture its products? State which one should be made first, which one should be made second, and which one should be made last. Briefly explain why you ordered them this way.Show all your work
Company GHI manufactures three products called A, B, and C. All three product have considerable market demand (exceeding what the company can make in a month). The following is the per unit product data: . B Selling price $259 $387 $835 Direct materials cost $62 $82 $112 Direct labor cost $78 $52 $130 Variable overhead costs $11 $42 $63 Fixed overhead costs $14 $25 $40 Variable selling and administrative expenses $15 $41 $50 Fixed selling and administrative expenses $56 $68 $87 Direct labor hours (DLH) per unit 6 DLH 4 DLH 12 DLH All three products are made using the same direct labor hours (DLH); however, Company GHI only has 35,000 DLH available each month. It must produce a minimum of 800 units of each product and is not sure which product to make after meeting the minimum production requirementsStep by Step Solution
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