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Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single machine. The machine has a monthly capacity of 500 hours,
Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single machine. The machine has a monthly capacity of 500 hours, Total market demand for the two products is limited to 190 units (each) monthly. Slavin is currently producing 110 Alphas and 110 Deltas each month. Cost and machine-usage data for the two products are shown in the following table, which Slavin managers use for planning purposes. Alpha $ 124 Delta S 154 Total Price Less variable costs per unit Material Labor Overhead Contribution margin per unit Fixed costs Manufacturing Marketing and administrative 19.5 24.5 16 32.5 37.5 18 $ 7,100 $ 4,100 $11,200 2.0 2.5 495 Machine hours per unit Machine hours used Machine hours available Quantity produced Maximum demand Profit 110 11 190 190 $3,100 Required: a. What is the optimal production schedule for Slavin? In other words, how many Alphas and Deltos should the company produce each month to maximize monthly profit? b. If Slavin produces at the level found in requirement (a). how much will monthly profit increase over the current production schedule? Complete this question by entering your answers in the tabs below. Reguired A Required B What is the optimal production schedule for Slavin? In other words, how many Alphas and Deltas should the company produce each month to maximize monthly profit? (Do not round Intermediate calculations.) Alphas Deltas
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