Instructions say to use the excel sheet to template to solve. I have completed Rec 4C and Req 4D. But I can't seem to figure out Req 4A and Req 4B.
[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: B100 A200 Estimated customer demand (in 2.800 2.000 units) Selling price per unit $1,200 $2,100 Variable expenses per unit $ 700 $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: B100 (hours per unit) A200 (hours per unit) Fabrication Molding Machining Assemble & Pack Capacity (in hours) 4,000 6,000 5,000 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. 4. In the Excel template, navigate to the "Requirement 4" tab. Using Solver: a. Calculate the maximum contribution margin the company can earn given the capacities of its four manufacturing departments b. How many units of each product would the company produce to earn the contribution margin from requirement 4a? c. Is your answer to requirement 4a greater than, less than, or equal to your answer from 3d? d. Which of the following best explains the reason for the answer to requirement 4c? Complete this question by entering your answers in the tabs below. Req 4A Req 4B Req 40 Req 4D Calculate the maximum contribution margin the company can earn given the capacities of its four manufacturing departments. The maximum contribution margin is Complete this question by entering your answers in the tabs below. Req 4A Req 4B Req 40 Req 4D How many units of each product would the company produce to earn the contribution margin from requirement 4a? B100 A200 Units produced Complete this question by entering your answers in the tabs below. Req 4A Req 4B Req 40 Req 4D Is your answer to requirement 4a greater than, less than, or equal to your answer from 3d? The answer in requirement 4a is the answer from requirement 3d. Complete this question by entering your answers in the tabs below. Req 4A Req 4B Req 4C Req 4D Which of the following best explains the reason for the answer to requirement 4c? TO Microsoft Solver simultaneously considers both products, the demands they make on each department, and the capacities available in each department, whereas the approach used in requirements 1-3 considers each product independently. TO Microsoft Solver considers each product independently, whereas the approach in Jrequirements 1-3 simultaneously considers both products, the demands they make on each department, and the capacities available in each department. Conroy Company Volume Trade-Off Decisions with More Than One Constraint Contribution Margin Analysis B100 Max Units B100 A 200 A200 Max Units 7 Units sold 8 Selling price 9 Variable expense per unit 10 Contribution margin per unit 11 Contribution margin per hour Departmental Data: Hours Demanded per Unit and Capacity Available B100 A 200 Capacity (Hours per Unit) (Hours per Unit) (in Hours) Fabrication 4,000 Molding 6,000 Machining 5,000 Assemble & Pack 4,500 $ $ $ 1,200 700 500 $ $ $ 2,100 1,200 900 B100 A 200 Total Departmental Data: Used vs. Unused Capacity (in Hours) B100 A 200 Used 14 Sales 15 Variable expenses 16 Contribution margin IS Fabrication Molding Machining Assemble & Pack Unused 4,000 6,000 5,000 4,500
