Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows: Sales price Direct materials Direct
Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows: Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Required number of labor hours Table A $ 42 Table B Table C $ 46 $ 60 8 9 1 3 7 2 2 2 7 7 7 0.50 0.50 4.00 2.50 1.00 2.00 Required number of machine hours 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 Table B Table C 50,000 units 30,000 units 20,000 units Required: 1. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. 2. If Blossom has only 45,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit 3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3 4. If Blossom has only 234,000 machine hours available, calculate the numbelof units of each table that Blossom should produce to itoile profit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started