Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

lossom, Incorporated, is a small company that manufactures three versions of patio tables. Unit information for its products follows: Table A Table B Table C

lossom, Incorporated, is a small company that manufactures three versions of patio tables. Unit information for its products follows:

Table A Table B Table C
Sales price $ 40 $ 44 $ 58
Direct materials 6 7 8
Direct labor 1 3 7
Variable manufacturing overhead 2 2 2
Fixed manufacturing overhead 5 5 5
Required number of labor hours 0.50 0.50 1.00
Required number of machine hours 4.00 2.50 2.00

Blossom has determined it can sell a limited number of each table in the upcoming year. Expected demand for each model follows:

Table A 50,000 units
Table B 20,000 units
Table C 30,000 units

Required:

Suppose direct labor hours have been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3.

If Blossom has only 40,000 direct labor hours available, calculate the number of units of each table Blossom should produce to maximize its profit.

Suppose the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3.

If Blossom has only 232,000 machine hours available, calculate the number of units of each table Blossom should produce to maximize its profit.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy Audits And Improvements For Commercial Buildings

Authors: Ian M. Shapiro

1st Edition

1119084164, 978-1119084167

More Books

Students also viewed these Accounting questions

Question

LO 12-3 Outline the objectives of labor unions.

Answered: 1 week ago

Question

1. Discuss the four components of language.

Answered: 1 week ago

Question

a. How many different groups were represented?

Answered: 1 week ago