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Problem 4-73 (Algo) Optimum Product Mix-Excel Solver (LO 4-4) Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single
Problem 4-73 (Algo) Optimum Product Mix-Excel Solver (LO 4-4) Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single machine. The machine has a monthly capacity of 500 hours. Total market demand for the two products is limited to 190 units (each) monthly. Slavin is currently producing 110 Alphas and 110 Deltas each month. Cost and machine-usage data for the two products are shown in the following table. which Slavin managers use for planning purposes. Alpha Delta Total Price $124 $154 Less variable costs per unit Material 19.5 32.5 Labor 24.5 37.5 Overhead 16 18 Contribution margin per unit 64 $ 66 Fixed costs Manufacturing Marketing and administrative Machine hours per unit $ 7,100 $4,100 $11,200 2.0 2.5 Machine hours used Machine hours available 495 500 Quantity produced Maximum demand Profit 110 110 190 $3,100 190 Required: a. What is the optimal production schedule for Slavin? In other words, how many Alphas and Deltas should the company produce each month to maximize monthly profit? b. If Slavin produces at the level found in requirement (a), how much will monthly profit increase over the current production schedule? Complete this question by entering your answers in the tabs below. Required A Required B What is the optimal production schedule for Slavin) In other words, how many Alphas and Deltas should the company produce each month to maximize monthly profit? (De not round intermediate calculations.) Alpha Detes Required B>
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