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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 S 53 S 57 $ 71 Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 12 13 6 6 Required number of labor hours Required number of machine hours 0.5 4.0 0.5 2.50 1.0 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 Table B Table C 50,000 units 25,000 units 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 Table A Table B Table C Ranking 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 (Enter the products in the sequence of their preferences; the product with first preference should be entered first.) Product Units 3. Suppose the number o machine hours has been den t ed as he most constrar resource cter ne how lo so s ou pront e production by an orde ng he s m-to Table A Table B Table C 4. If Blossom has only 245,000 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
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