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 $ 51 $ 55 $ 69
Direct materials 10 11 12
Direct labor 2 4 8
Variable manufacturing overhead 4 4 4
Fixed manufacturing overhead 4 4 4
Required number of labor hours 0.50 0.50 1.00
Required number of machine hours 4.00 2.50 2.00

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

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 50,000 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 243,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit.

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: John Wild, Ken Shaw, Barbara Chiappetta

8th Edition

1264111924, 9781264111923

More Books

Students also viewed these Accounting questions

Question

2. What does the other person defi ne as the beginning?

Answered: 1 week ago

Question

1. What do you defi ne as the start of interaction?

Answered: 1 week ago