Reference no: EM132453018
ACCT5996 Management Accounting and Business Analysis Assignment - University of New South Wales, Australia
Problem - Jon Wayne is in the dessert making business. He produces two special "dessert boxes": (1) Cherry Pop and (2) Chocolate Lover. His operating expenses total $2,000 per week. Jon is supported by three staff members, who are each responsible for different parts of the dessert box production process.
Bobo is responsible for ingredient mixing;
Samuel is in charge of decorating the desserts; and
Nancy is the hardest worker of the three. She packages the desserts with great care.
The working capacities of these three workers are as follows:
|
Activity (Person Assigned)
|
Estimated minutes per week
|
|
Mixing (Bobo)
|
2,400
|
|
Decorating (Samuel)
|
2,400
|
|
Packaging (Nancy)
|
2,400
|
Other relevant information for the two products appear below:
|
|
Cherry Pop
|
Chocolate Lover
|
|
Price per box
|
$14.00
|
$12.00
|
|
Direct materials
|
$2.00
|
$1.50
|
|
Demand per week
|
500 boxes
|
400 boxes
|
Required time required in each activity per box [in minutes} is presented below:
|
|
Cherry Pop
|
Chocolate Lover
|
|
Mixing
|
2
|
2
|
|
Decorating
|
2
|
3
|
|
Packaging
|
4
|
3
|
Required - Identify the binding constraint of Jon Wayne's business. Show all working.