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Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (
Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times in minutes required on each machine are as follows:
Machine
Component Shaper Grinder
The shaper is available for hours, and the grinder for hours. No more than units of component can be sold, but up to units of component and up to units of component can be sold. In fact, the company already has orders for units of component that must be satisfied. The per unit selling price and per unit variable costs for each of the three components are as follows:
Component Selling price Material Cost Labor Cost
$ $ $
$ $ $
$ $ $
a For each component, calculate the profit margin profit margin selling price material cost labor cost
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