Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The plani manager then showed the clase the followins information. table [ [ , Kechup,Mustard,Rolish ] , [ Curient priority based on CM perunit,
The plani manager then showed the clase the followins information.
tableKechup,Mustard,RolishCurient priority based on CM perunit,Bctuling tinge hours per unitYarlable cost per unit,$$saManthy demand units
The plant manager then said: "The puzzle I m not sure if we are maxinizing the proftability of our bottling capactiy aningore what do Youthink?
b
Your Answer Correct Answer Used
Assume that after the switch to glass bottles, the following cost relationship exist for al three products variable costs are of sellins price. Given this information, what must be the current contribution marg in per unil for ceach of the thre paroduct? Further, in what order should the company now rank its products fi terms of profitablity if the boteling activity is its prinary constraint? Roundanswers to dedmal places, es
c
c Given your new rankings in part b calculate how many bottles unils of each product the company would need to make to maximize profitability, considering the constraint, while not caceeding demand. The bottlng activity operates ours a day, days a month of no unif of on ittem is to be produced enter O Do not leave any field blonki
Units produced within this
Unetchup
time
c Then, calculate the companys manthly contribution marein under this scenario.
Monthly contrilbution maresin
CS Calailate the mantiny contribution marcin il would hove bere under the prrsious croduction priarity
Monthly canurlibution margin
ca Explain the difference in prafil between thoe two sceios if were is any
Front bs The plani manager then showed the clase the followins information.
tableKechup,Mustard,RolishCurient priority based on CM perunit,Bctuling tinge hours per unitYarlable cost per unit,$$saManthy demand units
The plant manager then said: "The puzzle I m not sure if we are maxinizing the proftability of our bottling capactiy aningore what do Youthink?
b
Your Answer Correct Answer Used
Assume that after the switch to glass bottles, the following cost relationship exist for al three products variable costs are of sellins price. Given this information, what must be the current contribution marg in per unil for ceach of the thre paroduct? Further, in what order should the company now rank its products fi terms of profitablity if the boteling activity is its prinary constraint? Roundanswers to dedmal places, es
c
c Given your new rankings in part b calculate how many bottles unils of each product the company would need to make to maximize profitability, considering the constraint, while not caceeding demand. The bottlng activity operates ours a day, days a month of no unif of on ittem is to be produced enter O Do not leave any field blonki
Units produced within this
Unetchup
time
c Then, calculate the companys manthly contribution marein under this scenario.
Monthly contrilbution maresin
CS Calailate the mantiny contribution marcin il would hove bere under the prrsious croduction priarity
Monthly canurlibution margin
ca Explain the difference in prafil between thoe two sceios if were is any
Front bs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started