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ArtDesign produces 2 types of Art-by-Number kits -- Marker and Paint. In production, each kit passes through 2 processes: Printing and Packaging. Marker Kits sell
ArtDesign produces 2 types of Art-by-Number kits -- Marker and Paint. In production, each kit passes through 2 processes: Printing and Packaging. Marker Kits sell for $20 per unit, and Paint Kits sell for $25 per unit. Raw materials is the only unit-level variable expense. The materials cost for a Marker Kit is $10 per unit, and the materials cost for a Paint Kit is $12.50 per unit. ArtDesign's accounting system has provided the following additional information about its operations and products: Resource Name Resource Available Marker Kit Resource Usage per Unit Paint Kit Resource Usage per Unit Printer time 420 minutes 2 minutes 2 minutes Packaging labor time 2,100 minutes 10 minutes 20 minutes Market demand: Marker Kits Paint Kits Marker Kits 100 per day 100 per day 75 per day Where is the bottleneck in ArtDesign's production
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