Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Conroy Company manufactures two products-B100 and A200. The company provided the following information with respect to these products: Estimated customer demand (in units) Selling price

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Conroy Company manufactures two products-B100 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 departments-Fabrication, 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 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. Click here to download the Excel template, which you will use to answer the questions that follow Required: 1. Refer to the "Requirements 1-3" tab in your Excel spreadsheet. Assume the company focuses solely on producing B100: a. Which department would be the constraint? (Hint: Create formulas in cells J7 through J10 that calculate B100's maximum output in Required: 1. Refer to the "Requirements 1-3" tab in your Excel spreadsheet. Assume the company focuses solely on producing B100: a. Which department would be the constraint? (Hint: Create formulas in cells J7 through J10 that calculate B100's maximum output in each department.) b. What is B100's contribution margin per hour of the constraining resource that you identified in requirement 1a? (Hint: Input a formula in cell B11 that translates B100's contribution margin per unit in cell B10 to its contribution margin per hour of the constraining resource.) Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Which department would be the constraint? (Hint: Create formulas in cells J7 through J10 that calculate B100's maximum output in each department.) The constraining department is Reg 18 > Required: 1. Refer to the "Requirements 1-3" tab in your Excel spreadsheet. Assume the company focuses solely on producing B100: a. Which department would be the constraint? (Hint: Create formulas in cells J7 through J10 that calculate B100's maximum output in each department.) b. What is B100's contribution margin per hour of the constraining resource that you Identified in requirement 1a? (Hint: Input a formula in cell B11 that translates B100's contribution margin per unit in cell B10 to its contribution margin per hour of the constraining resource.) Complete this question by entering your answers in the tabs below. Req 1A Req 1B What is B100's contribution margin per hour of the constraining resource that you identified in requirement la? (Hint: Input a formula in cell B11 that translates B100's contribution margin per unit in cell B10 to its contribution margin per hour of the constraining resource.) Product B 100's contribution margin per hour is Reg 1A

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

Internal Auditors Manual And Guide The Practitioners Guide To Internal Auditing

Authors: Milton Stevens Fonorow

1st Edition

0134711947, 978-0134711942

More Books

Students also viewed these Accounting questions

Question

Q.No.1 Explain Large scale map ? Q.No.2 Explain small scale map ?

Answered: 1 week ago

Question

8. Explain the contact hypothesis.

Answered: 1 week ago

Question

7. Identify four antecedents that influence intercultural contact.

Answered: 1 week ago