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Isner Company has the following production planned for the next four weeks. The figures reflect the full capacity level of operations. Planned output is equal
Isner Company has the following production planned for the next four weeks. The figures reflect the full capacity level of operations. Planned output is equal to the maximum demand per product.
Product | A | B | C | D |
Selling price | 160 | 214 | 100 | 140 |
Raw material cost | 24 | 56 | 22 | 40 |
Direct labor cost | 66 | 88 | 33 | 22 |
Variable overhead cost | 24 | 18 | 24 | 18 |
Fixed overhead cost | 16 | 10 | 8 | 12 |
Profit | 30 | 42 | 13 | 48 |
Planned output | 300 | 125 | 240 | 400 |
Direct labor hours per unit | 6 | 8 | 3 | 2 |
It has now been identified that labor hours available in the next four weeks will be limited to 4,000 hours.
In what order should the products be manufactured, assuming that the company wants to maximize profits in the next four weeks?
Group of answer choices
D, C, A, B
B, A, D, C
D, B, A, C
D, A, C, B
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