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Pierson Products manufactures furniture, primarily for institutioner ute such as tus compens budget hotel and motel chains. The company's Verne Valley plans manufactures one
Pierson Products manufactures furniture, primarily for institutioner ute such as tus compens budget hotel and motel chains. The company's Verne Valley plans manufactures one s models. The Basic desk is essentially a smell table with a center drawer The Professional des cest products The the side. 0.000 The production process at Pierson Products starts in the Cutting Department, where wood is cut and the desk is pred assembly (holes drilled, and so on) From the Cutting Department, the desk goes to the Assembly Departners when Inspected, and packaged for shipment. The process in each department uses a single machine There c available in the Cutting Department in a month and 40.000 machine-minutes in the Assembly Depannen demand is limited to 6,000 Basic desks and 4,000 Professional desks The current production desk model monthly. Cost and machine-usage data for the two products follow Overhead Price Less variable costs per unit Material Labor Contribution margin per unit Monthly fixed costs Manufacturing Marketing and administrative Total monthly fixed costs Cutting machine minutes per unit Assembly machine minutes per unit Cutting machine minutes used Cutting machine minutes available Assembly machine minutes used Basic Professional $78.00 $ 130.00 28.00 54.98 15.00 28.09 9.00 11.00 $18.00 $34.00 $53, 512,49 2.4 5.8 1.5 2.5 23, 24,000 Assembly machine minutes available Quantity produced 4,800 4,000 5,000 4,000 Maximund $136,000 Profit quired: 4000 of What is the optimal production schedule for Pierson Products? In other words, how many Basic desks and how many Profession deks should the company produce monthly to maximize profit? b. If Pierson Products produces at the level found in requirement (aj how much will monthly profit increase over the current production schedule? Complete this question by entering your answers in the tabs below.
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