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Required Information The following information applies to the questions displayed below] Conroy Company manufactures two products-8100 and A200. The company provided the following Information with
Required Information The following information applies to the questions displayed below] Conroy Company manufactures two products-8100 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 A200 2,000 $2,100 $ 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: Fabrication Molding Machining Assemble & Pack B100 A200 Capacity (hours per unit) (hours per unit) (in hours) 1 2 2 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? 1 2 3 4 Contribution Margin Analysis Conroy Company Volume Trade-Off Decisions with More Than One Constraint Departmental Data: Hours Demanded per Unit and Capacity Available 8100 A200 7 Units sold Selling price $ $ 2,100 9 Variable expense per unt 700 $ 1,200 10 Contribution margin per unit $ (700) S 900 Fabrication Molding 11 Contribution margin per hour (350) 5 300 12 13 8100 A200 Total 14 Sales $ 3 $ 5 Variable expenses 5 $ S Fabrication 16 Contribution margin $ $ Molding 7 Machining Assemble & Pack 9 8100 Hours per Unit A200 (Hours per Und Capady Hour 100 Max Units A200 Max Unit 1 . 4,000 2 6,000 5,000 0 4.500 Departmental Date: Used vs. Unused Capacity in Hours Used 8100 A200 Unused 4,000 6.000 5,000 4,500
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