Conroy Company Volume Trade-off Decisions with More Than One Constraint Contribution Margin Analysis 8100 A200 B100 Max Units A200 M Departmental Data: Hours Demanded per Unit and Capacity Available 3100 A200 Capacity (Hours per Unit) Cours par Unit) (in Hours) Fabrication 1 2 4,000 Molding 2 2 5.000 Machinin 2 0 5.000 Assemble & Pack 0 3 4.500 S $ $ 1,200 S 7005 500S 2.100 1.200 900 Units told Selling price Variable expense per unit 0 Contribution margin per unit 1 Contribution margin per hour 2 13 14 Sales 15 Variable expenses -16 Contribution margin 17 18. 19 20 B100 A200 Total Departmental Data Used vs. Unused Capacity (in Hours) B100 A200 Used $ 5 $ 5 S $ $ $ $ Fabrication Molding Machining Assemble & Pack Unused 4.000 6.000 5.000 4,500 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 110 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 to? (Hint: Input a formula in cell B11 that translates 8100's contribution margin per unit in cell B10 to its contribution margin per hour of the constraining resource.) Required information [The following information applies to the questions displayed below] 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 8100 2,800 $1,2ee $ 700 A200 2,800 $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: Blee Chours per unit) 1 2 Azee (hours per unit) 2 Fabrication Molding Machining Assemble & Pack Capacity (in hours) 4,000 6,8ee 5, een 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 Click here for a brief tutorial on SOLVER in Excel Click here for a a brief tutorial on Charts in Excel 2. Refer to the "Requirements 1-3" tab in your Excel spreadsheet. Assume the company focuses solely on producing A200: a. Which department would be its constraint? (Hint: Create formulas in cells K7 through K10 that calculate A200's maximum output in each department.) b. What is A200's contribution margin per hour of the constraining resource that you identified in requirement 2a? (Hint: Input a formula in cell C11 that translates A200's contribution margin per unit in cell C10 to its contribution margin per hour of the constraining resource.) Complete this question by entering your answers in the tabs below. Reg 2A Req 28 Which department would be its constraint? (Hint: Create formulas in cells K7 through K10 that calculate A200's maximum output in each department.) The constraining department is REZA Req 2B > Reg 2A Req 2B What is A200's contribution margin per hour of the constraining formula in cell C11 that translates A200's contribution margin p constraining resource.) Product A200's contribution margin per hour is