Question
MOMA Inc. can produce three different products interchangeably on two machines which have a total availability of 250 hours per month. The accounting department provides
MOMA Inc. can produce three different products interchangeably on two machines which have a total availability of 250 hours per month. The accounting department provides the following information on these products.
A | B | C | |
Selling Price per unit | $25 | $35 | $80 |
Variable costs per unit | $15 | $20 | $45 |
Time required to produce 1 unit | 6 minutes | 12 minutes | 42 minutes |
Minimum units that must be produced per month | 100 | none | 140 |
Maximum unit demand per month | 200 | none | 200 |
Required:
a) Prepare a production plan that shows how many units of each product should be produced for the period
b) Compute the total contribution margin expected based on the production plan
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Step: 1
Required a A B C Minutes required per unit 6 12 42 Minutes in a hour 60 60 60 Hours required pe...Get Instant Access to Expert-Tailored Solutions
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Project Management The Managerial Process
Authors: Eric W Larson, Clifford F. Gray
8th Edition
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