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Krazo Industries manufactures and sells three products. Both labour and machine time are applied to the products as they pass through the department. For the
Krazo Industries manufactures and sells three products. Both labour and machine time are applied to the products as they pass through the department. For the next six months, the following monthly capacity will be available in the department: Available time in machine hours 3,000 The related data for each product is as follows: MOZ Machine hours per unit Demand in units Contribution margin per unit Fixed overhead per unit 1.5 500 $1471 $150 T28 1.0 400 $82 $100 B19 2.0 1,000 $1081 $32 Required: 1. In what order should demand for the products be filled? Show supporting calculations. (3 marks) M07 T28 B19 Order 2. Is there enough capacity to satisfy the demand for all products? Show supporting calculations. (3 marks) M07 T28 B19 3. Based on the results from parts 1 and 2, determine the number of units of each product that could be produc Show supporting calculations. (3 marks) MO7 0 T28 0 B19 0 Number of units 4. Based on the results from parts 1 and 3, determine the total contribution margin that could be earned. Show supporting calculations. (1 mark) M07 T28 B19
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