A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials to produce; Product B sells for $75 but needs $30 of materials to produce; Product C sells for $100 but needs $50 of materials to produce; Product D sells for $150 but needs $75 of materials to produce. The processing requirements for each product on each of the four machines are shown in the table.

Processing time (min/unit)

	A	B	C	D
W	6	1	3	12
X	9	10	4	8
Y	4	3	12	9
Z	10	0	7	11

W,X,Y,Z are the workcenters

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the full cost method refers to maximizing the gross margin or product margin per unit for each product, the contribution margin approach refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the throughput contribution margin for each product. Assume all products start at machine W then are processed in order at X, Y and Z. Assume each worker works one 40 hour shift per week and is paid $10 per hour. Further, weekly overhead for the plant is $6000. During your calculations, carry all work to three decimal places.

Questions:

Use the information in Table 7.5. Using the full cost method, products should be scheduled in which order?

Use the information in Table 7.5 , For the product mix 80A, 80B, 80C, and 60 D. if work center W starts an additional 50 units of product A and keeps it in their department, what is the net change in cash flow compared to if the inventory was not built?

Use the information in Table 7.5 , For the product mix 80A, 80B, 80C, and 60 D. if work center W starts an additional 50 units of product A and keeps it in their department, what is the change in net income?

Use the information in Table 7.5. If I produce 80A, 80B, 80C, and 60 D, what is the net income? Assume a full cost system is used.

Use the information in Table 7.5, For the product mix 80A, 80B, 80C, and 60 D, if work center W starts an additional 50 units of product A and keeps it in their department, what is the value of the inventory?

Use the information in Table 7.5. Using the throughput margin method, what is the optimal product mix if direct labor is not relevant to the decision? Assume that you cant make a partial unit thus use whole numbers only for your product mix.