Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sarah has talked with the marketing department about the situation and suggested that the company raise the sales price on the weight bench to $70

image text in transcribed
image text in transcribed
image text in transcribed
Sarah has talked with the marketing department about the situation and suggested that the company raise the sales price on the weight bench to $70 to reduce customer demand. The marketing department believes that at the higher price, demand for the weight bench will drop to 5.920 units. How should Sarah allocate the 10,500 machine hours based on this new information? Pharoah Innovations, Inc produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10.500 machine hours. and no other products that the company makes use these machines. Sarah Jacob, the company's operations manager, is preparing the production schedule for the coming month and can't seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget. Michael Stoner, the company's controller, has gathered the following information about the two products: Calculate the total number of machine hours needed to produce enough units to meet the sales demand for the two products. Total number of machine hours eTextbook and Media Attempts: 1 of 5 used (b) Your answer is correct. How should 5 arah allocate the 10,500 available machine hours between the two products so that Pharoah maximizes its profits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions