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Please show your work and/or explain how you got the answer: Abbott Sandwich Corporation is a manufacturer of 3 types of sandwiches: ham, peanut butter

Please show your work and/or explain how you got the answer:

Abbott Sandwich Corporation is a manufacturer of 3 types of sandwiches: ham, peanut butter and jelly and tuna fish.

Janitorial Salaries for manufacturing facility $4,000

Rent on Manufacturing Facility $2,000

Ham

Peanut butter&Jelly

Tuna Sandwiches

Std.qty/sand

Std.pric/lb

Std.qty/sand

Std.pric/lb

Std.qty/sand

Std.pric/lb

Direct Materials

.2lbs/sand

$4/lb

.2lbs/sand

$3/lb

.2lbs/sand

$5/lb

Direct materials-bread

2slices/sand

$.10/slice

2slices/sand

$.10/slice

2slices/sand

$.10/slice

Direct Labor

.1 dlh/sand

$10/dlh

.2dlh/sand

$20/dlh

.2dlh/sand

$15/dlh

VOH utilities

.1mh/sand

$5/mh

.4mh/sand

$5/mh

.2mh/sand

$5/mh

FOH janitor

.1mh/sand

$8/mh

.4mh/sand

$8/mh

.2mh/sand

$8/mh

FOH-rent

.1 dlh/sand

$10/dlh

.2dlh/sand

$10/dlh

.2dlh/sand

$10/dlh

Price/sandwich

$10/sand

$15/sand

$6/sand.

Annual Demand

4000

5000

6000

  1. Compute the CONTRIBUTION margin in terms of total $s for all 3products;
  2. Abbott is thinking about discontinuing the Tuna Sandwich product line. If it does so, it will reduce the janitorial salaries by $1,000. Should Abbott discontinue the Tuna sandwiches line? Why or why not?
  3. Abbott is thinking about outsourcing the Ham sandwiches to Fischer corporation for $3/sandwich. If it does so, it can reduce janitorial expenses by $3,000. Should Abbott outsource? Why or why not?
  4. Assume that the toaster/machine can only run a total of 1100 hours or it will break. How many of each sandwich should abbott make? Show your work.

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