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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

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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 B180 2,800 $1,200 $ 700 A208 2,eee $2,100 $1,2ee 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: B1ee Chours per unit) 1 Fabrication Molding Machining Assemble & Pack Azee (hours per unit) 2 2 3 NN Capacity (in hours) 4,000 6,eee 5, eee 4,5ee 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 Highest contribution margin per unit of its constraining resource If the company decided to initiate production by maximizing t many units of this product would it be able to produce before It would be able to produce units. Total contribution margin Conroy Company Volume Trade-Off Decisions with More Than One Constraint Contribution Margin Analysis 6100 3100 Max A200 MA Units 3100 A200 Departmental Data: Hours Demanded per unit and capacity Available A200 Capacity [Hours per unit) (Hours per Unit) (in Hours) Fabrication 1 2 4,000 Molding 2 6,000 Machining 2 0 5,000 Assemble & Pack 0 3 4,500 Units sold Selling price Variable expense per unit Contribution margin per unit Contribution mangin per hour 2.100 $ 5 $ $ S 700 5 (700) S (350) S 1.200 900 300 B100 A200 Total Sales 5 Variable expenses Contribution margin $ S $ $ 5 $ $ $ $ Departmental Data: Used vs. Unused Capacity in Hours) 3100 A200 Used Fabrication Molding Machining Assemble & Pack Unused 4,000 6,000 5,000 4.500 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 B180 2,800 $1,200 $ 700 A208 2,eee $2,100 $1,2ee 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: B1ee Chours per unit) 1 Fabrication Molding Machining Assemble & Pack Azee (hours per unit) 2 2 3 NN Capacity (in hours) 4,000 6,eee 5, eee 4,5ee 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 Highest contribution margin per unit of its constraining resource If the company decided to initiate production by maximizing t many units of this product would it be able to produce before It would be able to produce units. Total contribution margin Conroy Company Volume Trade-Off Decisions with More Than One Constraint Contribution Margin Analysis 6100 3100 Max A200 MA Units 3100 A200 Departmental Data: Hours Demanded per unit and capacity Available A200 Capacity [Hours per unit) (Hours per Unit) (in Hours) Fabrication 1 2 4,000 Molding 2 6,000 Machining 2 0 5,000 Assemble & Pack 0 3 4,500 Units sold Selling price Variable expense per unit Contribution margin per unit Contribution mangin per hour 2.100 $ 5 $ $ S 700 5 (700) S (350) S 1.200 900 300 B100 A200 Total Sales 5 Variable expenses Contribution margin $ S $ $ 5 $ $ $ $ Departmental Data: Used vs. Unused Capacity in Hours) 3100 A200 Used Fabrication Molding Machining Assemble & Pack Unused 4,000 6,000 5,000 4.500

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