Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Outward Rowing Company manufactures canoes and kayaks. Due to an increasing focus on fitness, the company has been experiencing an increased demand for its products.
Outward Rowing Company manufactures canoes and kayaks. Due to an increasing focus on fitness, the company has been experiencing an increased demand for its products. Two of its newer products, which are very popular with water sport enthusiasts, require a waterproofing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 12,000 machine hours, and no other products that the company makes use these machines. Charlie Green, the company's operations manager, is preparing the production schedule for the coming month and can't seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget. Mollie Beach, the company's controller, has gathered the following information about the two products: Selling price per unit Direct materials Direct labor Variable overhead Fixed overhead Profit per unit Canoe WP $200 80 16 12 20 $72 Kayak WP $244 60 32 24 40 588 8,000 0.4 14,000 0.8 Unit sales demand Machine hours per unit Required a. Calculate the total number of machine hours needed to produce enough units to meet the sale demand for the two products b. How should Charlie allocate the 12,000 available machine hours between the two produces so that Outward Rowing maximizes its profits? at tatal contribution marginwil Outward Rowing realize based on your answer to ted that the
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started