Question
Glocker Company makes three products in a single facility. These products have the following pricing, demand and cost structure for year 2021: Per Unit Alpha
Glocker Company makes three products in a single facility. These products have the following pricing, demand and cost structure for year 2021: Per Unit Alpha Gama Beta Selling Price $55.80 $54.60 $43.10 Variable Cost $27.90 $31.20 $21.20 Yearly Demand (units) 2,000 1,200 3,000 Fixed cost for the year is $450,000. Although the company is doing well, there is always shortage of labor. As a result, the company needs to prioritize its productions plans. The company's production team has supplied the following information. 1 unit of Alpha requires 2 hours of labor, 1 unit of Gama requires 1.5 hours of labor and 1 unit of Beta requires 0.5 hours of labor. Only 4,600 hours of labor is available every year. Glocker employs 4 workers in production, each worker works 2,000 hours per year on average. All products use the same raw material, a special organic compound. Purchase price of the organic compound is $20 per kg. Alpha requires 6 kg, Gama requires 3 kg and Beta requires 5 kg of the organic compound for each unit of production. The company can purchase only 35,000 kg per year because of shortage of raw materials.
- A. B. C. D. E. F. | Alpha
|
- A. B. C. D. E. F. | Gama |
- A. B. C. D. E. F. | Beta |
A. | 7.80 |
B. | 4.65 |
C. | 4.38 |
D. | 29.20 |
E. | 13.95 |
F. | 15.60 |
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