Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I don't understand. We are supposed to prioritize producing product with highest contribution margin per limited resources. For both direct labor hours and machine time,

I don't understand. We are supposed to prioritize producing product with highest contribution margin per limited resources.

For both direct labor hours and machine time, Product B has both highest contribution margin per hours which is 24 dollar each. higher than product A's margin/labor= 20 and margin/machine = 15. Why the answer for 93 is to prioritize A (answer is D) and for 92 answer is C.

Thanks.

image text in transcribed
92. Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. $15-00 $1200 1-000 units 2,000 units How much of each product should Underwood manufacture per month? A. 1,000 units of A and 2,000 units of B B. 1,000 units ofA and0 units ofB C. 0 units of A and 2,000 units of B D. 500 units of A and 1,000 units of B 93. Spring, Inc. manufactures two products. It currently has 1,000 hours of direct labor and 2,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. $1500 $1200 mom zooms Machmcm How much of each product should Spring manufacture per month? A. 1,000 units of A and 2,000 units of B B. 1,000 units ofA andO units ofB C. 0 units of A and 2,000 units of B D. 1,000 units ofA and 250 units of B

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

Step: 3

blur-text-image

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

College Accounting Chapters 1- 9

Authors: James A Heintz, Robert W Parry

23rd Edition

1337794783, 978-1337794787

More Books

Students also viewed these Accounting questions

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago

Question

Keep your head straight on your shoulders

Answered: 1 week ago

Question

Be straight in the back without blowing out the chest

Answered: 1 week ago

Question

Wear as little as possible

Answered: 1 week ago