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can some please help me with this question? Shekerah Company produces and sells three products: A100, X250 and C12. The Company has been experiencing difficulties
can some please help me with this question?
Shekerah Company produces and sells three products: A100, X250 and C12. The Company has been experiencing difficulties during the past two years, this has resulted in the restructuring of operations, including automation of many processes. Tia Simmons, the new management accountant is determined to improve performance through better planning. In particular, she is concerned about a past practice of producing and selling an equal number of each product and believes that the linear programming technique is appropriate for salving the company's product mix problem. Tia has been able to gather the following information for the purpose of applying the technique to next month's production and sales schedule. 1. Cost, revenue and production data A100 X250 C12 Selling price $100.00 $75.00 $50.00 Direct material 18.00 30.00 12.00 Variable overhead 40.00 20.00 24.00 Fixed Overhead 35.00 17.50 21.00 Machine hours per unit 0.50 0.25 0.30 The three products share a common manufacturing facility that has a maximum capacity of 6,000 machine hours per month. As a result of the automation, the amount of labour cost is insignificant and is now classified as part of overhead. The fixed overhead is applied to production on the basis of machine hours. The monthly fixed overhead flexible budget is $540,000 allocated on 6.000 machine hours. 2 Direct material is imported. D'Andre Company has a quota to import a maximum of 26.000 kilograms every month at an average cost of 515 per kilogram. D'Andre Company expects to carry a full line of the three products. To maintain this policy requires the following minimum amounts: A 100: 3.000 units X250: 6,000 units: C12: 5,000 units Required: Fermuate and abe the proper ecuations for the rear programming statement of D'Andres production problem, 3 a Shekerah Company produces and sells three products: A100, X250 and C12. The Company has been experiencing difficulties during the past two years, this has resulted in the restructuring of operations, including automation of many processes. Tia Simmons, the new management accountant is determined to improve performance through better planning. In particular, she is concerned about a past practice of producing and selling an equal number of each product and believes that the linear programming technique is appropriate for salving the company's product mix problem. Tia has been able to gather the following information for the purpose of applying the technique to next month's production and sales schedule. 1. Cost, revenue and production data A100 X250 C12 Selling price $100.00 $75.00 $50.00 Direct material 18.00 30.00 12.00 Variable overhead 40.00 20.00 24.00 Fixed Overhead 35.00 17.50 21.00 Machine hours per unit 0.50 0.25 0.30 The three products share a common manufacturing facility that has a maximum capacity of 6,000 machine hours per month. As a result of the automation, the amount of labour cost is insignificant and is now classified as part of overhead. The fixed overhead is applied to production on the basis of machine hours. The monthly fixed overhead flexible budget is $540,000 allocated on 6.000 machine hours. 2 Direct material is imported. D'Andre Company has a quota to import a maximum of 26.000 kilograms every month at an average cost of 515 per kilogram. D'Andre Company expects to carry a full line of the three products. To maintain this policy requires the following minimum amounts: A 100: 3.000 units X250: 6,000 units: C12: 5,000 units Required: Fermuate and abe the proper ecuations for the rear programming statement of D'Andres production problem, 3 a Step by Step Solution
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