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! Required information [The following information applies to the questions displayed below.) Conroy Company manufactures two products-B100 and A200. The company provided the following information
! Required information [The following information applies to the questions displayed below.) Conroy Company manufactures two products-B100 and A200. The company provided the following information with respect to these products: Estimated customer demand (in units) Selling price per unit Variable expenses per unit B100 2,800 $ 1,200 $ 700 A200 2,000 $2,100 $1,200 The company has four manufacturing departmentsFabrication, 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: Fabrication Molding Machining Assemble & Pack B100 (hours per unit) 1 2 2 0 A200 (hours per unit) 2 2 0 3 Capacity (in hours) 4,000 6,000 5,000 4,500 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. Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a brief tutorial on SOLVER in Excel. Click here for a a brief tutorial on Charts in Excel. 7. In the Excel template, navigate to the Requirement 7 tab. Assume that Conroy is considering raising the price of B100 to $1,400. The company believes that the price increase would drop maximum customer demand from 2,800 units to 2,600 units. a. If Conroy implements the price increase, which product would have the highest contribution margin per unit of its constraining resource? b. If the company decided to initiate production by maximizing the output of the product chosen in requirement 7a, then how many units of this product would it be able to produce before encountering that product's constraint? c. If the company implemented the production plan in requirement 7b, then how many units of its remaining product could it produce with the capacity that is still available? d. What total contribution margin would the company earn if it followed the production plan described in requirements 7b and 7c? Complete this question by entering your answers in the tabs below. Req 7A Req 7B Req 7C Req 7D would the company What total contribution ma 7c? arn if it followed the production plan described in requirements 7b and Total contribution margin 7. In the Excel template, navigate to the Requirement 7" tab. Assume that Conroy is considering raising the price of B100 to $1,400. The company believes that the price increase would drop maximum customer demand from 2,800 units to 2,600 units. a. If Conroy implements the price increase, which product would have the highest contribution margin per unit of its constraining resource? b. If the company decided to initiate production by maximizing the output of the product chosen in requirement 7a, then how many units of this product would it be able to produce before encountering that product's constraint? c. If the company implemented the production plan in requirement 7b, then how many units of its remaining product could it produce with the capacity that is still available? d. What total contribution margin would the company earn if it followed the production plan described in requirements 7b and 7c? Complete this question by entering your answers in the tabs below. Req 7A Req 7B Req 7C Req 7D If company decided to production by maximizing output of the product chosen in requirement 7a, then how many units of this product would it be able to produce before encountering that product's constraint? It would be able to produce units. 7. In the Excel template, navigate to the Requirement 7 tab. Assume that Conroy is considering raising the price of B100 to $1,400. The company believes that the price increase would drop maximum customer demand from 2,800 units to 2,600 units. a. If Conroy implements the price increase, which product would have the highest contribution margin per unit of its constraining resource? b. If the company decided to initiate production by maximizing the output of the product chosen in requirement 7a, then how many units of this product would it be able to produce before encountering that product's constraint? c. If the company implemented the production plan in requirement 7b, then how many units of its remaining product could it produce with the capacity that is still available? d. What total contribution margin would the company earn if it followed the production plan described in requirements 7b and 7c? Complete this question by entering your answers in the tabs below. Req ZA Req 7B Req 7C Req 7D company implemented the production plan in requirement 7b, produce with the capacity that is still available? how many units of its remaining product could it It would be able to produce units with the capacity that is still available. Conroy Company Volume Trade-Off Decisions with More Than One Constraint Contribution Margin Analysis B100 A200 B100 Max Units A200 Max Units Units sold Selling price Variable expense per unit Contribution margin per unit Contribution margin per hour Departmental Data: Hours Demanded per Unit and Capacity Available B100 A200 Capacity (Hours per Unit) (Hours per Unit) (in Hours) Fabrication 1 2 4,000 Molding 2 2 6,000 Machining 2 0 5,000 Assemble & Pack 0 3 4,500 $ $ $ $ $ 700 $ (700) $ (350) $ 2,100 1,200 900 300 B100 A200 Total Departmental Data: Used vs. Unused Capacity (in Hours) B100 A200 Used Sales Variable expenses Contribution margin $ $ $ $ $ $ $ $ $ Fabrication Molding Machining Assemble & Pack Unused 4,000 6,000 5,000 4,500 ! Required information [The following information applies to the questions displayed below.) Conroy Company manufactures two products-B100 and A200. The company provided the following information with respect to these products: Estimated customer demand (in units) Selling price per unit Variable expenses per unit B100 2,800 $ 1,200 $ 700 A200 2,000 $2,100 $1,200 The company has four manufacturing departmentsFabrication, 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: Fabrication Molding Machining Assemble & Pack B100 (hours per unit) 1 2 2 0 A200 (hours per unit) 2 2 0 3 Capacity (in hours) 4,000 6,000 5,000 4,500 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. Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a brief tutorial on SOLVER in Excel. Click here for a a brief tutorial on Charts in Excel. 7. In the Excel template, navigate to the Requirement 7 tab. Assume that Conroy is considering raising the price of B100 to $1,400. The company believes that the price increase would drop maximum customer demand from 2,800 units to 2,600 units. a. If Conroy implements the price increase, which product would have the highest contribution margin per unit of its constraining resource? b. If the company decided to initiate production by maximizing the output of the product chosen in requirement 7a, then how many units of this product would it be able to produce before encountering that product's constraint? c. If the company implemented the production plan in requirement 7b, then how many units of its remaining product could it produce with the capacity that is still available? d. What total contribution margin would the company earn if it followed the production plan described in requirements 7b and 7c? Complete this question by entering your answers in the tabs below. Req 7A Req 7B Req 7C Req 7D would the company What total contribution ma 7c? arn if it followed the production plan described in requirements 7b and Total contribution margin 7. In the Excel template, navigate to the Requirement 7" tab. Assume that Conroy is considering raising the price of B100 to $1,400. The company believes that the price increase would drop maximum customer demand from 2,800 units to 2,600 units. a. If Conroy implements the price increase, which product would have the highest contribution margin per unit of its constraining resource? b. If the company decided to initiate production by maximizing the output of the product chosen in requirement 7a, then how many units of this product would it be able to produce before encountering that product's constraint? c. If the company implemented the production plan in requirement 7b, then how many units of its remaining product could it produce with the capacity that is still available? d. What total contribution margin would the company earn if it followed the production plan described in requirements 7b and 7c? Complete this question by entering your answers in the tabs below. Req 7A Req 7B Req 7C Req 7D If company decided to production by maximizing output of the product chosen in requirement 7a, then how many units of this product would it be able to produce before encountering that product's constraint? It would be able to produce units. 7. In the Excel template, navigate to the Requirement 7 tab. Assume that Conroy is considering raising the price of B100 to $1,400. The company believes that the price increase would drop maximum customer demand from 2,800 units to 2,600 units. a. If Conroy implements the price increase, which product would have the highest contribution margin per unit of its constraining resource? b. If the company decided to initiate production by maximizing the output of the product chosen in requirement 7a, then how many units of this product would it be able to produce before encountering that product's constraint? c. If the company implemented the production plan in requirement 7b, then how many units of its remaining product could it produce with the capacity that is still available? d. What total contribution margin would the company earn if it followed the production plan described in requirements 7b and 7c? Complete this question by entering your answers in the tabs below. Req ZA Req 7B Req 7C Req 7D company implemented the production plan in requirement 7b, produce with the capacity that is still available? how many units of its remaining product could it It would be able to produce units with the capacity that is still available. Conroy Company Volume Trade-Off Decisions with More Than One Constraint Contribution Margin Analysis B100 A200 B100 Max Units A200 Max Units Units sold Selling price Variable expense per unit Contribution margin per unit Contribution margin per hour Departmental Data: Hours Demanded per Unit and Capacity Available B100 A200 Capacity (Hours per Unit) (Hours per Unit) (in Hours) Fabrication 1 2 4,000 Molding 2 2 6,000 Machining 2 0 5,000 Assemble & Pack 0 3 4,500 $ $ $ $ $ 700 $ (700) $ (350) $ 2,100 1,200 900 300 B100 A200 Total Departmental Data: Used vs. Unused Capacity (in Hours) B100 A200 Used Sales Variable expenses Contribution margin $ $ $ $ $ $ $ $ $ Fabrication Molding Machining Assemble & Pack Unused 4,000 6,000 5,000 4,500
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