Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The constraint at Vrana Inc. is an expensive milling machine. The three products listed below use this constrained resource. JH KW DF Selling Price Per

The constraint at Vrana Inc. is an expensive milling machine. The three products listed below use this constrained resource.

JH

KW

DF

Selling Price Per Unit

$ 318.44

$ 219.75

$ 384.60

Variable Cost Per Unit

$ 239.15

$ 122.56

$ 328.25

Time on the Milling Machine

8.20

6.50

4.80

Monthly Demand - Units

8,700

10,200

7,200

Prepare a schedule to determine the rank of each of the products, then answer the following questions by selecting the correct answer from the drop-down box.

What is the contribution margin per unit for JH?

-

What is the contribution margin per unit for KW?

-

What is the contribution margin per unit for DF?

-

What is the contribution margin per unit of the constrained resource for JH?

-

What is the contribution margin per unit of the constrained resource for KW?

What is the contribution margin per unit of constrained resource for DF?

How many hours of machine time is necessary to satisfy the demand for all products?

-

If there is sufficient time available to satisfy demand for all but the least profitable product, what is the maximum the copmany will pay to acquire one more hour of the constrained resource?

What is the rank of the products, in order of their current profitability?

Using

A.

2,870

B.

$11.74

C.

#1 - KW; #2 - DF; #3 - JH

D.

$79.29

E.

$9.67

F.

$56.35

G.

$14.95

H.

$97.19

I.

$580.17

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Audit And Management Of The Company

Authors: Trésor Ilunga KAMPELA, Bernard KAYIMBW MANETA

1st Edition

6205405253, 978-6205405253

More Books

Students also viewed these Accounting questions

Question

What are the purposes of collection messages? (Objective 5)

Answered: 1 week ago