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Question 2 1/10 points A company manufactures three styles of bowling balls: Comet 10. Quasar, and Super Nova. The controller supplied price, cost, and
Question 2 1/10 points A company manufactures three styles of bowling balls: Comet 10. Quasar, and Super Nova. The controller supplied price, cost, and expected demand data for each product line as follows: Comet 10 Quasar Super Nova Selling price 95.00 S 120.00 $ 150.00 Direct material per unit $ 15.00 $ 19.00 $ 21.00 Direct labour per unit S 18.00 S 20.00 $ 22.00 Fixed costs per unit $ 13.05 S 10.52 S 15.54 Direct labour hours per unit Machine hours per unit 2 1.25 2 1.30 2.00 Total fixed costs Expected demand 25,000 31,000 21.000 S 326,250 $ 326.250 S 326,250 Sales commissions (10% of SP) S 9.50 S 12.00 $ 15.00 The company is planning to expand into a new factory but construction will not be completed for 3 years. Until the expansion. production is constrained by total machine hours. Required: Advise the company on how to prioritize production. Justify and Include calculations to support your recommendation. (10 marks)
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