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able 7.5 A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials to produce; Product

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able 7.5 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. product (process time/unit) B D Work center 1 3 12 W 9 10 4 X 8 4 12 9 y I 10 7 Z 11 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 Use the information in Table 7.5. Using the full cost method, in what sequence should products be scheduled for production? a,b,c,d c,d,b,a Od,b,c,a d,c,a,b none of the above A 6

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