Sammamish Brick, Inc., manufactures bricks using clay deposits on the company's property. Raw clays are blended and then extruded into molds to form unfired bricks. The unfired bricks are then stacked onto movable metal platforms and rolled into the kiln where they are fired until dry. The dried bricks are then packaged and shipped to retail outlets and contractors. The bottleneck in the production process is the kiln, which is available for 3,325 hours per year. Data concerning the company's four main products appear below. Products are sold by the pallet. Textured Traditional Cinder Roman Facing $1,504 $ 700 Brick Block Brick Gross revenue per pallet Contribution margin per pallet Annual demand (pallets) Hours required in the kiln per pallet $945 $590 125 10 $812 $480 $1,115 $570 185 5 145 10 135 No fixed costs could be avoided by modifying how much is produced of any product Required: 1a. Calculate the total hours required in the kiln to satisfy demand for all products Answer is complete and correct. Traditional Textured Cinder Roman Total Facing Brick Block Brick Annual demand in pallets 125 145 135 185 Hours required in the drying kiln per pallet 10 10 4 5 1,450 540 4,165 Total hours required in the drying kiln 1,250 925 3. What would be the total contribution margin for the production plan you have proposed? Answer is complete but not entirely correct. Traditional Textured Cinder Roman Brick Facing Block Brick Total Contribution margin per pallet $ $ $ 590 700 480 570 Hours required in drying kiln per pallet 5 X 1,450( 540 410 X $ $ 1,015,000 $ 241,900 $259,200 $ Total contribution margin 2,850 1,518,950 5. The company is considering introducing a new product, glazed Venetian bricks, whose variable cost would be $945 per pallet and that would require 10 hours in the kiln per pallet. What is the minimum acceptable selling price for this new product? XAnswer is complete but not entirely correct. $ Variable cost 945 Total contribution margin of total city Time required (hours) 70 $ 10 700 $ 1,645 Selling price Sammamish Brick, Inc., manufactures bricks using clay deposits on the company's property. Raw clays are blended and then extruded into molds to form unfired bricks. The unfired bricks are then stacked onto movable metal platforms and rolled into the kiln where they are fired until dry. The dried bricks are then packaged and shipped to retail outlets and contractors. The bottleneck in the production process is the kiln, which is available for 3,325 hours per year. Data concerning the company's four main products appear below. Products are sold by the pallet. Textured Traditional Cinder Roman Facing $1,504 $ 700 Brick Block Brick Gross revenue per pallet Contribution margin per pallet Annual demand (pallets) Hours required in the kiln per pallet $945 $590 125 10 $812 $480 $1,115 $570 185 5 145 10 135 No fixed costs could be avoided by modifying how much is produced of any product Required: 1a. Calculate the total hours required in the kiln to satisfy demand for all products Answer is complete and correct. Traditional Textured Cinder Roman Total Facing Brick Block Brick Annual demand in pallets 125 145 135 185 Hours required in the drying kiln per pallet 10 10 4 5 1,450 540 4,165 Total hours required in the drying kiln 1,250 925 3. What would be the total contribution margin for the production plan you have proposed? Answer is complete but not entirely correct. Traditional Textured Cinder Roman Brick Facing Block Brick Total Contribution margin per pallet $ $ $ 590 700 480 570 Hours required in drying kiln per pallet 5 X 1,450( 540 410 X $ $ 1,015,000 $ 241,900 $259,200 $ Total contribution margin 2,850 1,518,950 5. The company is considering introducing a new product, glazed Venetian bricks, whose variable cost would be $945 per pallet and that would require 10 hours in the kiln per pallet. What is the minimum acceptable selling price for this new product? XAnswer is complete but not entirely correct. $ Variable cost 945 Total contribution margin of total city Time required (hours) 70 $ 10 700 $ 1,645 Selling price
