Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need genuine process and answer for this question. i am confused to the way my professor solved this question. thanks in advance Tactical product

i need genuine process and answer for this question. i am confused to the way my professor solved this question. thanks in advance

image text in transcribed
Tactical product mix decisions An air conditioning ducting company can produce two types of ducting, folded steel ducts or wound metal round ducts. Both products use similar materials however each takes a different amount of production resources to produce. Recently, due to a safety audit, the company was advised it had to update its factory premises so for three months they will have limited machine hour capacity of 840 machine hours on their main assembly lines, however the company wants to maximise profitability over this period. The following information is known about their normal production usage of labour hours: Folded Ducting Round ducting Sell Price (per metre) $158.00 $181.00 Variable production costs per metre $95.00 $99.75 Contribution margin (SP-VC) $63.00 $81.25 Machine hours to produce: 0.2 0.25 Weekly Demand (if all orders could be fulfilled in metres) 2500 1900 Required: During the next month while machine hours are limited, calculate the quantities of each product the company should produce over the three months to maximize profit

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_2

Step: 3

blur-text-image_3

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

Accounting Equations & Answers

Authors: Barcharts, BarCharts Inc

1st Edition

1423218248, 9781423218241

More Books

Students also viewed these Accounting questions

Question

Outline the four basic components of drives according to Freud.

Answered: 1 week ago

Question

A greater tendency to create winwin situations.

Answered: 1 week ago