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Question Completion Status: 1 2 5 7 8 9 10 11 12 130 1150 Save and Submit Click Submit to complete this assessment Question 15
Question Completion Status: 1 2 5 7 8 9 10 11 12 130 1150 Save and Submit Click Submit to complete this assessment Question 15 of 15 Question 15 10 points Saved The Dubs Division of Fast Company (the parent company produces wheels for off road sport vehicles. Dubs has two products 1 and 2. The two products only differ in how they are marketed Product 1 is sold in bulk to customizing shops, while Product 2 is sold directly to consumers, Dub's estimated operating data for the year follows. Product 1: Revenues... 5300,000; Var Mfg ... $160,000: Var G&A... $40,000; CM ... $100,000; Fixed Mfg... $24,000; Fixed G&A... $36,000; Op. Profits... $40,000, Unit Sales ... 1,000. Product 2: Revenues... $400,000; Var Mig .. $160,000, Var G&A.. $60,000; CM ... $180,000; Fixed Mfg ... $32,000; Fixed GA.. $48.000, Op. Profits. 5100,000; Unit Sales - 1,000. Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. Assume the Dubs division has a total manufacturing capacity of 2.000 wheels per year. If the maximum external demand for either product separately is 1,500 units, what is the maximum operating profit Dubs can make in a year (assuming an optimal allocation of resources)? 320000 Click Submit to complete this assessment. 151
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