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Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows: Table A Table B Table C
Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows:
Table A | Table B | Table C | |||||||
Sales price | $ | 53 | $ | 57 | $ | 71 | |||
Direct materials | 11 | 12 | 13 | ||||||
Direct labor | 2 | 4 | 8 | ||||||
Variable manufacturing overhead | 5 | 5 | 5 | ||||||
Fixed manufacturing overhead | 6 | 6 | 6 | ||||||
Required number of labor hours | 0.5 | 0.5 | 1.0 | ||||||
Required number of machine hours | 4.0 | 2.50 | 2.0 | ||||||
Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows:
Table A | 50,000 | units | |
Table B | 25,000 | units | |
Table C | 25,000 | units | |
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