Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. Jamestown Furniture Co. is a small, but fast-growing manufacturer of living room furniture. Its two principal products are end tables and sofas. There are

5. Jamestown Furniture Co. is a small, but fast-growing manufacturer of living room furniture. Its two principal products are end tables and sofas. There are five processes in the manufacturing at Jamestown: Cutting the lumber, cutting the fabric, sanding, staining, and assembly. Jamestown has one employee working in fabric cutting and one employee working in staining. These are relatively skilled workers and could be replaced only with some difficulty. The cutting and sanding operations are performed by two workers each, and while there is some skill to these operations, it is less critical than for staining and for fabric cutting. Assembly is the least skill-based process and is currently done by one full-time employee and a group of part timers who provide a total of 175 minutes of working time per week. The other employees work a 40-hour week, with 5 hours off for breaks, training, and personal time. Assume a fourweek month, and that by prior agreement, any of the employees can be switched from one task to another.

The current demand for Jamestown's products and sales prices are provided below. Jamestown expects demand to increase significantly in the coming months (this depends on whether it is able to successfully obtain the order it is negotiating to get from a motel chain). The materials cost for the table is $150 and $275 for the sofa.

End Tables

Sofas

Price

$500

$800

Current demand (units per month)

250

150

The time required for each activity and the total time available are shown below.

Required time for Table

Required time for Sofas

Required total time

Hours Available

Slack TIme

Cut

150

45

195

280

85

Sand

100

30

130

280

150

Assemble

125

225

350

700

350

Stain

250

120

370

280

-90

Cut Fabric

0

90

90

140

50

Required:

What is the most profitable production plan for Jamestown? Explain your answer with supporting Calculations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The New Yellow Book Government Auditing Standards

Authors: Rebecca A. Meyer

1st Edition

1119784638, 978-1119784630

More Books

Students also viewed these Accounting questions