Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Round your answer to the nearest DOLLAR. Do not enter $ or, when inputting dollar amounts. If you are asked to input a word be
Round your answer to the nearest DOLLAR. Do not enter $ or, when inputting dollar amounts. If you are asked to input a word be sure to spell it exactly as provided. For units round up to the next whole unit. QUESTION: Else Limited manufactures luxurious gold jewelry and specializes in 2 types of finger rings, a Blue Sapphire Ring and a Diamond Ring. Each ring must go through a polishing machine in the Polishing Department. Total hours available for the Polishing Department for both products is 400 hours. There are no other constraints in the production process. The following information is available for both products: Blue Diamond Sapphire Contribution margin per unit $1,200 $900 Time required to polish one unit (hours) 1.0 hour 0.50 hours Using the above information answer the following questions. What is the contribution margin per hour of Polishing Department time for the Blue Sapphire Ring? A What is the contribution margin per hour of Polishing Department time for the Diamond Ring? A Determine the optimal product mix. Given your calculations, how many units of Blue Sapphire Ring should the company produce? A Given your calculations, how many units of Diamond Ring should the company produce? What is the total contribution margin earned for the optimal product mix
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started