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PA7-6 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7) Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information
PA7-6 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7) Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows: Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Required number of labor hours Required number of machine hours Table A Table B Table C $ 54 $ 58 $ 72 11 12 13 3 5 9 5 5 5 7 7 7 0.50 4.00 0.50 2.50 1.00 2.00 Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows: Table A Table B Table C 60,000 units 20,000 units 20,000 units Required: 1. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. 2. If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. 3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. 4. If Blossom has only 246,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. Ranking Product Table A Table B Table C Required 1 Required 2 Required 3 Required 4 If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.) Units Product Produced Table B 20,000 Table A 60,000 Table C 30,000 Required 1 Required 2 Required 3 Required 4 Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. Product Ranking Table A 2 Table B Table C 3 Required 1 Required 2 Required 3 Required 4 If Blossom has only 246,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.). Units Produced Product Table B Table A Table C
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