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please help with Requirement 3. Above, I've included all relevant information including correct answers for previous requirements as well as the data table. Below is
please help with Requirement 3. Above, I've included all relevant information including correct answers for previous requirements as well as the data table.
Below is the question I need help with regarding product mix. Why should we not dedicate the most resources to V2 and then the remaining to A6?
high-precisian machine. The folawing informalion is available: IIf (Click w vew the infometion.) Requirements Resd the requirements. 1. What praduat mix - that is, haw many units of Aa and EX4 - will maximice Gartia's peaealing inoame? Shes yaur rialalations. 2. Suppeee Gareia can nerenesn the annual caparity of its meg.lar machines by 12,060 machine-hrurs at a cost of Requirement 1. Whal protuct mix - Lhat is, haw many units of AB and EX4 - will miximize Garcia's oderaling income? Show your ealculalicns. E S60,000. Should Gareia incresese the eapacily of the regular machines by 12000 mashino haurs? By how much wil Garciak oparetinn income incresse or decresse? Show your caiculations Eegri by caloulating the benefit fram only seling AB or EX4. 3. Suppoee that the capacily of the reguler machines has been increased to 62,000 hours. Garcia has been approsched by Wariarly Comporation to supply 16,000 units of ariother cuting tool, V2, for $118 per unil. Garcis must eilher actept the crder for all 16,000 units ar reject il talaliy. V2 is exaclly like AB except that it wariable manufacturing cast is $80 per unit. ill takes 1 hour ba praduce ore unit of V2 on the regular machine, and variable marketing ceet equals $12 per unit.) Whal protuct mix should Garcia choase to maximize operating ineome? Shoe your cialaulations. Garcia should use its capacity to produce AB eince the rat relavent venefit is higher. The additional contribution from selling EXA rather then Requirement 2. Suppoee Garcia can increase the annuel sapacity of its raguler mechines by 12, , obo mechine-7ours at a coet of \$6i, a0d, Shouid Garcia increas, or decre6es? Show your cakuletions. Bagn by celculabing the banafit from only selling A6i or tX4 with tha increseed capacity of the regular machine. IEntar en amount in each input ceil including zero Garcia accept Moriarty's order. Next, determine the product mix for A6 and EX4 that will maximize operating income along with the decision you made about Moriarty's order. What product mix should Garcia choose to maximize operating income? (Enter an amount in each input cell, including zero balances.) Based on the above calculations, the product mix that maximizes operating income is units of V2 units of A6, and units of EX4
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