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Conroy Company manufactures two products$$B$100$ and A$200.$ The company provided the following information with respect to these products:

B$100$ A$200$

Estimated customer demand $($in units$)2,8002,000$

Selling price per unit $ $1,200$ $ $2,100$

Variable expenses per unit $ $700$ $ $1,200$

The company has four manufacturing departments$$Fabrication$,$ Molding, Machining, and Assemble & Pack. The capacity available in each department $($in hours$)$ and the demands that one unit of each of the company$$s products makes on those departments is as follows:

B$100$

$($hours per unit$)$

A$200$

$($hours per unit$)$ Capacity

$($in hours$)$

Fabrication $124,000$

Molding $226,000$

Machining $205,000$

Assemble & Pack $034,500$

The company is trying to decide what product mix will maximize profits. Given that its fixed costs will not change regardless of the chosen mix, the company plans to identify the product mix that maximizes its total contribution margin.

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Required:

$1.$ Refer to the $$Requirements $1-3$ tab in your Excel spreadsheet. Assume the company focuses solely on producing B$100$:

a$.$ Which department would be the constraint? $($Hint: Create formulas in cells J$7$ through J$10$ that calculate B$100$s maximum output in each department.$)$

b$.$ What is B$100$s contribution margin per hour of the constraining resource that you identified in requirement $1$a$?($Hint: Input a formula in cell B$11$ that translates B$100$s contribution margin per unit in cell B$10$ to its contribution margin per hour of the constraining resource.$)$