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Akimoto's Bicycle Co assembles three types of bicycles: Charger, Sublime, Kidde. Due to their residential location they operate with one 8 hour shift, 5 days
Akimoto's Bicycle Co assembles three types of bicycles: Charger, Sublime, Kidde. Due to their residential location they operate with one 8 hour shift, 5 days per week, 50 weeks a year. Balancing the bikes is the bottleneck. The information about production time and costs for these three bicycles are Charger Sublime Kidde Hours to produce Selling price 1.75 0.5 $600 $300 $200 $75 $100 Direct material $100 50 Direct labor $150 $75 $50 Variable overhead $25 $25 $ 25 Fixed overhead $25 $20 a. How many of each bicycle should be produced to maximize profits? b. What qualitative factors would you need to consider (explain why and list at least 3)
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