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 $ 50 $ 54 $ 68
Direct materials 10 11 12
Direct labor 2 4 8
Variable manufacturing overhead 4 4 4
Fixed manufacturing overhead 9 9 9
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

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.

Product Ranking
Table A
Table B
Table C

2. If Blossom has only 60,000 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

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.

Product Ranking
Table A
Table B
Table C

4. If Blossom has only 242,000 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_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

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

2nd Canadian Edition

0176707123, 978-0176707125

More Books

Students also viewed these Accounting questions

Question

Evaluate the integral. tan 2 x cos 3 x dx

Answered: 1 week ago

Question

Explain the various methods of job evaluation

Answered: 1 week ago

Question

Differentiate Personnel Management and Human Resource Management

Answered: 1 week ago

Question

Describe the functions of Human resource management

Answered: 1 week ago

Question

=+v3. Determine if they are targeting the same audience.

Answered: 1 week ago

Question

=+1. Compare the copy on both sites. Are they alike or distinctive?

Answered: 1 week ago

Question

=+What kind of clients would work well in this medium?

Answered: 1 week ago