Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 54 $ 58 $ 72
Direct materials 11 12 13
Direct labor 3 5 9
Variable manufacturing overhead 5 5 5
Fixed manufacturing overhead 7 7 7
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 60,000 units
Table B 20,000 units
Table C 20,000 units

If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)

Product Units Produced

If Blossom has only 246,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)

Product Units Produced

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Loose Leaf For Financial Accounting Fundamentals

Authors: John Wild, Ken Shaw, Barbara Chiappetta

6th Edition

1260151980, 978-1260151985

More Books

Students also viewed these Accounting questions