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Better Fitness, Inc. ( BFI ) , manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for
Better Fitness, Inc. BFI manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. Both machines use BFIpatented technology that provides the user with an extremely wide range of motion capability for each type of exercise performed. Until now, such capabilities have been available only on expensive weight machines used primarily by physical therapists.At a recent trade show, demonstrations of the machines resulted in significant dealer interest. In fact, the number of orders that BFI received at the trade show far exceeded its manufacturing capabilities for the current production period. As a result, management decided to begin production of the two machines. The two machines, which BFI named the BodyPlus and the BodyPlus require different amounts of resources to produce.The BodyPlus consists of a frame unit, a press station, and a pecdec station. Each frame produced uses hours of machining and welding time and hours of painting and finishing time. Each press station requires hours of machining and welding time and hour of painting and finishing time, and each pecdec station uses hours of machining and welding time and hours of painting and finishing time. In addition, hours are spent assembling, testing, and packaging each BodyPlus The raw material costs are $ for each frame, $ for each press station, and $ for each pecdec station; packaging costs are estimated to be $ per unit.The BodyPlus consists of a frame unit, a press station, a pecdec station, and a legpress station. Each frame produced uses hours of machining and welding time and hours of painting and finishing time. Each press station requires hours of machining and welding time and hours of painting and finishing time, each pecdec station uses hours of machining and welding time and hours of painting and finishing time, and each legpress station requires hours of machining and welding time and hours of painting and finishing time. In addition, hours are spent assembling, testing, and packaging each BodyPlus The raw material costs are $ for each frame, $ for each press station, $ for each pecdec station, and $ for each legpress station; packaging costs are estimated to be $per unit.For the next production period, management estimates that hours of machining and welding time; hours of painting and finishing time; and hours of assembly, testing, and packaging time will be available. Current labor costs are $ per hour for machining and welding time; $ per hour for painting and finishing time; and $ per hour for assembly, testing, and packaging time. The market in which the two machines must compete suggests a retail price of $ for the BodyPlus and $ for the BodyPlus although some flexibility may be available to BFI because of the unique capabilities of the new machines. Authorized BFI dealers can purchase machines for of the suggested retail price.BFIs president believes that the unique capabilities of the BodyPlus can help position BFI as one of the leaders in highend exercise equipment. Consequently, she states that the number of units of the BodyPlus produced must be at least of the total production.
To do: Analyze the production problem at Better Fitness, Inc., and prepare a report for BFIs president presenting your findings and recommendations. Include but do not limit your discussion to a consideration of the following items:
The recommended number of BodyPlus and BodyPlus machines to produce
The effect on profits of the requirement that the number of units of the BodyPlus produced must be at least of the total production
where efforts should be expended in order to increase contribution to profits.
Please answer all questions completely and correctly, do not just tell me what to do do it And please support your recommendations and findings with the data found!!!!!! I will give you a like and rate you five stars.
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