Calculate allocation of resources and hence production mix

Reference no: EM13920520

An organisation manufactures plastic-covered steel fencing in two qualities: standard and heavy gauge. Both products pass through the same processes involving steel forming and plastic bonding.

The standard gauge sells at $15 a roll and the heavy gauge at $20 a roll. There is an unlimited market for the standard gauge but outlets for the heavy gauge are limited to 13,000 rolls a year. The factory operations of each process are limited to 2,400 hours a year. Other relevant data is given below.

Variable costs per roll

	Direct material	Direct wages	Direct expense
Standard	$ 5	$ 7	$ 1
Heavy	7	8	2
Processing hours per 100 rolls		Steel	Plastic
Standard		forming Hours 6	bondingHours 4
Heavy		8	12
Required

Calculate the allocation of resources and hence the production mix which will maximise total contribution.

Reference no: EM13920520

Questions Cloud

Briefly discuss the concept of the cost of quality : Discuss how just-in-time manufacturing might affect a Job Shop. (Consider both positive and negative impacts on both internal and external operations.)

Money market funds : Investments include $120,000 of trading securities, $180,000 of debt securities with a maturity date of January 15, 2014, and $140,000 of money market funds.Prepaid rent relates to an advance payment for the period from January 1, 2013 - August 31, 2..

What other techniques toyota can adopt instead : Write about how the development of japanese management accounting has an influence to the contemporary development of strategic management accounting and management accounting information.

Restate the importance of the issue : A sentence that grabs the reader's attention o History/background: What is the issue at hand? Who cares - Where is the issue prevalent? Why is it important - Ethical Decision Making Approaches & Theories o Explain which ethical decision making appro..

Calculate allocation of resources and hence production mix : The standard gauge sells at $15 a roll and the heavy gauge at $20 a roll. Calculate the allocation of resources and hence the production mix which will maximise total contribution.

Document required by the sec to solicit shareholder votes : Question 1: What document is required by the SEC to solicit shareholder votes. Question 2: What information can be found on an income statement?

Flexible solution for the consultants : What will adding a flexible solution for the consultants to connect to the network do to this risk model? What are some safeguards that can be implemented to reduce the risk?

What are the impacts of reducing lot sizes : Explain the role of lot size reduction in implementing pull production. What are the impacts of reducing lot sizes? What is generally required in order to make lot size reduction possible?

Synopsis of the trophy project case study : 1. Provide a synopsis of the Trophy Project case study. Highlight your observations about the project. 2. Did the project appear to be planned correctly? Why or why not? Relate your answers to the expected documents for proper project ..

User Account

All Pages