Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Conroy Company manufactures two productsB100 and A200. The company provided the following information with respect to these products: Estimated customer demand (in units) Selling price
Conroy Company manufactures two productsB100 and A200. The company provided the following information with respect to these products: Estimated customer demand (in units) Selling price per unit Variable expenses per unit B100 2,800 $1,200 $ 700 A200 2,000 $2,100 $1,200 The company has four manufacturing departmentsFabrication, Molding, Machining, and Assemble & Pack. The capacity available in each department (in hours) and the demands that one unit of each of the company's products makes on those departments is as follows: B100 (hours per unit) A200 (hours per unit) Fabrication Molding Machining Assemble & Pack Capacity (in hours) 4,000 6,000 5,000 4,500 ONN vom The company is trying to decide what product mix will maximize profits. Given that its fixed costs will not change regardless of the chosen mix, the company plans to identify the product mix that maximizes its total contribution margin. Volume Trade-Off Decisions with More Than One Constraint Contribution Margin Analysis Departmental Data: Hours Demanded per Unit and Capacity Available B100 A200 Capacity (Hours per Unit) (Hours per Unit) (in Hours) Fabrication 2 4,000 B100 A200 B100 Max Units A200 Max Units Units sold 1 Selling price Variable expense per unit 1,200 700 500 $ $ $ 2,100 1,200 900 Molding Machining w on 6,000 5,000 Contribution margin per unit $ Assemble & Pack 4,500 Contribution margin per hour B100 A200 Total Departmental Data: Used vs. Unused Capacity (in Hours) B100 A200 Used Sales Variable expenses Contribution margin Unused 4,000 Fabrication Molding 6,000 Machining Assemble & Pack 5,000 4,500 Calculate the maximum contribution margin the company can earn given the capacities of its four manufacturing departments. The maximum contribution margin is How many units of each product would the company produce to earn the contribution margin from requirement 4a? B100 A200 Units produced
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