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It's your first day on the job at JAPPLE Inc, and the CEO has asked you to determine how best to utilize the company's packaging
It's your first day on the job at JAPPLE Inc, and the CEO has asked you to determine how best to utilize the company's packaging machine, which is only up and running for 300 hours (18,000 minutes) per month. JAPPLE specializes in three products, the JPAD, JPHONE and the JWATCH. In addition to the table below, JAPPLE anticipates incurring $150,000 of unavoidable fixed expenses during the month. JPhone JPad JWatch Sales Revenue $ 800 $ 500 $ 850 Variable Cost $ 350 $ 200 $ 350 Packging Machine Processing Time - Minutes 30 15 40 Maximum Sales Per Month 350 500 425 QUESTIONS What is the optimal number of each product that should be produced each month? Product PHONE units Product JPAD units Product JPHONE units Product JPAD units Product IWATCH units If all three products had unlimited demand, which product should be produced in order to maximize operating income? Answer Choices (Use A, B or C for answers - do not type out product name) A.JPAD B.JPHONE CJWATCH Produce this product JAPPLE has received an offer from a supplier to outsource the manufacturing of the JWATCH to their facilities. The CEO is strongly considering accepting their offer, but needs your input on one matter. Does the company's fixed expenses during the month factor into the decision of outsourcing? (ANSWER CHOICES: YES or NO) Your Response
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