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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.
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 3,125 hours per year. Data concerning the company's four main products appear below. Products are sold by the pallet. Traditional Textured Cinder Roman Brick $ 976 $500 185 Brick Facing Block Gross revenue per pallet Contribution margin per pallet Annual demand (pallets) Hours required in the kiln per $ 833 $ 1,417664 $660 $424 135 $520 125 145 10 10 4 pallet 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 Traditional Textured Cinder Roman Total Brick Facing Block Brick Total hours required in the drying kiln 1b. Is there sufficient capacity in the kiln to satisfy demand for all products? Yes No 2a. Calculate the profitability index for the company's four products Traditional Textured Cinder Roman Brick Facing Block Brick
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