Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Only 1 of the 2 sandwiches can be chosen. Which option would maximize profits given that there are only 400 hours left. There can also

image text in transcribed

Only 1 of the 2 sandwiches can be chosen. Which option would maximize profits given that there are only 400 hours left. There can also not be any increases to the # of labour hours

Appendix Sandwich Information Existing Chacarero Pambazo Beef Chorizo Cubana Delight Proposed Chile's Mediterranean Chivito Light 0.08 0.06 0.05 0.07 0.05 Labour per unit (hours) Estimated demand (units) Total labour hours 30,000 35,000 42,000 15,000 15,000 2,400 2,100 2,100 1,050 750 $9.50 $9.55 $9.00 $10.00 $8.00 (4.35) (4.55) (5.00) (4.85) (3.40) Sales price Direct materials Direct labour (1) Fixed overhead (2) Profit (0.96) (0.72) (0.60) ( (0.84) (0.60) (3.43) $0.76 (3.43) $0.85 (3.43) $(0.03) (3.43) $0.88 (3.43) $0.57 Note 1: Direct labour is based on a rate of $12 per hour. Note 2: Fixed overhead is applied on a per-unit basis of $3.43 per unit. Labour hours available Currently, there are 7,000 labour hours available annually for the production of sandwiches. Current production uses 6,600 hours

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

More Books

Students also viewed these Accounting questions