Jason Company manufactures three products: J$,$ K$,$ and L$.$ The demand for each product is $100$ units. The selling price, variable costs, and contribution margin for one unit of each product follow:

Product J K L

Selling price $$280$ $$370$ $$120$

Total variable expenses $24025387$

Contribution margin $$40$ $$117$ $$33$

Number of simulations

needed per unit of product $593$

Jason buys a simulation service from outside. The cost per simulation is $$6.$ And the simulation cost for each product is included in the total variable expenses given above.

The number of simulations that can be purchased is limited$.$

Further assume that Jason can buy Product K from a supplier and resell it$.$ The purchase price of K would be $$343$ per unit.

Required: In what order $($which product first, second, and third?$)$ does the company have to make the products?

Selected Answer:

C$.$

L $==>$ J $==>$ K

Answers:

A$.$

J $==>$ L $==>$ K

B$.$

K $==>$ L $==>$ J

C$.$

L $==>$ J $==>$ K

D$.$

J $==>$ K $==>$ L

E$.$

L $==>$ K $==>$ J

Use the information given above. Further assume that Jason has used alll available simulations provided by the exsisting simulation service company. Jason has found that a new simulation service company that can provide additional simulations for a substantial premium price.

If Jason needs additional simulations only for Product K$,$ what is the maximum price per simulation that Jason is willing to pay to the new simulation service company?

Selected Answer:

E$.$

$$6$

Answers:

A$.$

$$123$

B$.$

$$16$

C$.$

$$13$

D$.$

$$19$

E$.$

$$6$

F$.$

$$10$

G$.$

$$117$