Question
Conroy Company manufactures two productsB100 and A200. The company provided the following information with respect to these products: B100 A200 Estimated customer demand (in units)
Conroy Company manufactures two productsB100 and A200. The company provided the following information with respect to these products: B100 A200 Estimated customer demand (in units) 2,800 2,000 Selling price per unit $ 1,200 $ 2,100 Variable expenses per unit $ 700 $ 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 companys products makes on those departments is as follows: B100 (hours per unit) A200 (hours per unit) Capacity (in hours) Fabrication 1 2 4,000 Molding 2 2 6,000 Machining 2 0 5,000 Assemble & Pack 0 3 4,500 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. 4. In the Excel template, navigate to the Requirement 4 tab. Using Solver: a. Calculate the maximum contribution margin the company can earn given the capacities of its four manufacturing departments. b. How many units of each product would the company produce to earn the contribution margin from requirement 4a? c. Is your answer to requirement 4a greater than, less than, or equal to your answer from 3d? d. Which of the following best explains the reason for the answer to requirement 4c? I have 4C and 4D but I'm still getting 4A and 4B wrong...any help is appreciated. Thanks!
53% D Thu 4:54 PM Q E Chrome File Edit View History Bookmarks o.. AutoSave A s Home Insert Draw Page Layout Formulas Data People Tab Window Help ExcelAnalytics_Volume Tradeoff Decisions_Template (1) Review View 2 AY Y Clear Reappy Taxt to - Q- Search Sheet Share Comments M 1 Groupe Ungroup Data Analysis Kevia E Got External Refresh Properties Edit Links Stocks Geography Son Plat S Edit Links vancedCalume A Biology Data 2 What If Analysis statistics Solver Sulatatal Solver Parameters Set Objective: 'Requirement 4'!$A$3 Conroy Company Volume Trade-Off Decisions with More Than One Constraint value of: 0 To Max Min By Changing Variable Cells: omic Contribution Margin Analysis Subject to the Constraints: B100 1,000 1,200 T OD A200 1,500 2,100 1.200 7 Units sold & Selling price 9 Variable pense per unit 10 Contribution margin per unit 11 Contribution margin per hour Departmental Data Hours Demanded per Unit and capacity Available B100 A200 Capacity Hours per Unit) Cours per Unit) On Hours) Fabrication 4.000 1 Molding 6,000 Machining 5,000 Rassemble & Pack 4,500 Add $ $ $ B100 Max Units A200 Max Units 1 .000 2.000 3.000 3,000 2,500 HIV/0! ADIV/0! 1,500 S Change 900 00 $ 250 $ $ 300 Delete Reset All Unused 14 Sales 15 Variable penses 16 Contribution margin S $ $ B100 1,200,000 700,000 500.000 $ $ $ A200 3,150,000 1,800,000 1.050,000 $ $ $ Total 4,250.000 2,500,000 1,250,000 3.000 Load/Save Fabrication Malding Machining Rassemble & Pack Departmental Data: Used vs. Unused Capacity in Hours) A200 1,000 4,000 2.000 3,000 5.000 2.000 2.000 4,500 4,500 1,000 3,000 Make Unconstrained variables Nan-Negative Select a Solving Method: GRC Nonlinear Options Salving Method Select the CRG Nonlinear engine for Salver Problems that are smooth nonlinear. Select the LP Simplex engine for linear Salver Problems, and select the Pwolutionaryengine for Salver problems that are non- smooth. Close Solve ROYIDIxlsx 36 CHEATING AND PLAGIARISM Requirements 1-3 Requirement 4 Requirements Requirement 7 Requirement + Point C - + 100Step 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