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The typical monthly production mix at Bangor Industries is as follows: Deluxe models Regular models Economy models 55% 35% 10% Each deluxe model typically requires
The typical monthly production mix at Bangor Industries is as follows: Deluxe models Regular models Economy models 55% 35% 10% Each deluxe model typically requires 10 hours of labor and 11 hours of machine time. Each regular model takes 8.5 hours of labor and 9 hours of machine time. Finally, the economy model needs, on average, 7.5 hours of labor and 6 hours of machine time. a. The weighted per-unit planning value for machine hours is (Enter your response rounded to two decimal places.) (Enter your response rounded to two decimal places.) The weighted per-unit planning value for labor hours is b. Suppose that for the next month the mix is expected to change to 35% deluxe, 25% regular, and 40% economy models. (Enter your response rounded to two decimal places.) The new weighted per-unit planning value for machine hours is The new weighted per-unit planning value for labor hours is. (Enter your response rounded to two decimal places.) c. When the product mix changes from month to month, Bangor Industries should use a approach to sales and operations planning.
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