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Pasture Corporation processes all of its products through a lathe machine. The lathe is only available for 60 hours per week and is the constraint
Pasture Corporation processes all of its products through a lathe machine. The lathe is only available for 60 hours per week and is the constraint for all of the products. Data regarding Pasture Corporation's three products follows: Product D $80.00 $45.00 Product E $60.00 $35.00 Product F $100.00 $80.00 Selling price per unit Variable cost per unit Minutes of lathe time required per unit 20 10 15 In what order should Pasture Corporation emphasize its products to maximize its contribution margin? (Rank the products in order from most profitable to least profitable.) Accessibility Products Company has three models: D, E, and F. The following information is available: I Sales revenue Variable expenses | Contribution margin Fixed expenses Operating income (loss) || Model D $55,000 $32,000 $23,000 $16.000 $7,000 Model E T $35.000 $13,000 $22.000 $16.000 $6,000 Model F $29,000 $14,000 $15,000 $16.000 $(1,000) Accessibility Products Company is thinking of dropping model F because it is reporting an operating loss. All fixed costs are unavoidable. Assume Accessibility Products Company is able to increase the sale price of product F to $30.000 with no change in volume of units sold and no change in variable costs or fixed costs. What affect will this have on operating income
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