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E 8-13 Critical Resource Constraints B&B Manufacturing (BBM) makes two types of lawnmower engines which it supplies to lawnmower manufacturers: a turbo and a self-propelling
E 8-13 Critical Resource Constraints B&B Manufacturing (BBM) makes two types of lawnmower engines which it supplies to lawnmower manufacturers: a turbo and a self-propelling engine. The company has agreed to a limited supply of skilled labor with the local machinist union of 7,500 labor hours. Due to supply constraints, BBM has been able to obtain only a limited number of engine bolts, a necessary part in the production process. Anticipated sales have exceeded capacity for both engines. Information on each product is as follows: Contribution margin per unit Labor hours to produce one unit Bolts required for one unit Total labor hours available: 7,500 hours Total bolts available: 30,000 bolts $ Turbo 0.75 2 Self-Propelling $ 1. Identify the critical resource constraint under which BBM must operate. 2. Which product should be produced? 5 0.5 3
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