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please help me :( Adams Lake Wood Products Ltd. sells three ty For the first quarter of 2019 , management estimates the following results: At
please help me :(
Adams Lake Wood Products Ltd. sells three ty For the first quarter of 2019 , management estimates the following results: At the end of the fourth quarter of 2018 , the company expects to have inventory of 2,000 50kg bags of Pine and 1,600 bags of Birch. Inventory is expected to be zero by the end of the first quarter 2019 due to the end of the heating season. Each of the three products has enough direct materials stockpiled for the first quarter 2019 production requirements. However, one of the machines used to process the wood pellets recently broke down and the replacement parts are not expected to arrive until the middle of summer 2019. As such, the plant capacity has been reduced to 1,200 machine hours for the first quarter of 2019. Due to the different requirements for each type of wood used in the pellet making process, the number of 50kg bags produced per hour varies significantly. Birch is the hardest and yields only 40 bags per machine hour while Cedar is the softest and yields 60 bags per machine hour. Pine is in the middle yielding 50 -bags per machine hour. Required: a) Calculate the number of 50kg bags of each product that Chase Wood Products Ltd. should produce in the first quarter of 2019 to maximize company profits. (10 marks) b) What is the forecast net income before taxes for the first quarter of 2019 Step by Step Solution
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