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Product Decisions Under bottlenecked Operations Mil Metals Inc. has three grades of metal product, Type S Type 10, and Type 20 Financial data for the
Product Decisions Under bottlenecked Operations Mil Metals Inc. has three grades of metal product, Type S Type 10, and Type 20 Financial data for the three grades are atakow Revenues Vinable c Fixed cost Operating mome Number of units Type 3 Type 10 Type 20 $43.000 $40.000 36,300 $4,000) [8,000) $28,000) $26.00) (8.000) 08.00) $42.000) $36.000 534.5001 $1,000 -5.000 $0.20 $13.000 5,000 5260 $22,000 5,000 Operating income per un ry operations require all three grades to be melted as a fumace before being firmed. The fumace runs 24 hours a day, 7 days a week, and a production botimeck the humnace hours reared per unt of wech product we as follows Type 6 hours Type 10 Type 20 hours 12 hours The Hakang Department is considering a new marketing and sales campaig Determining the unit contribution margin per famar hour will ast in making your decision on their contribuon margin two decimal places unit contribution margin per furnace hour Type 5 Type 10 Type 20 which product should be emphasized in the marketing and sales campaign in order to maximize profitability) Lype 10 Product Decim Vinder Botinecked Operations sell Hatals Inc has three grades of metal produit, Type 5, Type 10, and Type 20 financial data for the three grades are as f Revives Types $43,000 Tunt Operating inme Number of units Operate come per unit Type 101 Type 20 4,000 $56,500 $34.000) 2300) (0.000) (8,000) (0.000) (42.000 $6,000) $4,5000 $1,000 5,000 $0.20 $13,000 $22,000 5.000 -5.000 $7.00 5.4.40 Hs pens require a three grades to be meted a fumace before being formest. The furnace in 24 ur dry, 7 days a ation bottlerek The furnace hours repared per unt of each product are as follows Type S Type 30 Type 201 hours 4 hours 12 hour the Marketing Departmeme is considering a new marketing and sales campaign Detang the unit combution margin per fumace hour will assist making your decision. Round the a : contntiubn margin to two seamal places margin per matur 3 Type 10 Type 20 which product should be emphasized in the marketing and sales campaign in order to maximize prefabry Type 10
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