Determine the optimal mix of products

Assignment Help Managerial Accounting
Reference no: EM133188602

Question - A small firm makes three similar products, which all follow the same three-step process, consisting of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes for inspection, and 10 minutes of drilling per unit; product B requires 10 minutes of milling, 4 minutes for inspection, and 8 minutes of drilling per unit; and product C requires 8 minutes of milling, 4 minutes for inspection, and 16 minutes of drilling per unit. The department has 20 hours available during the next period for milling, 15 hours for inspection, and 24 hours for drilling.  Product A contributes $2.40 per unit to profit, product B contributes $2.50 per unit, and product C contributes $3.00 per unit.

Required - Determine the optimal mix of products in terms of maximizing contributions to profits for the period. Then, find the range of optimality for the profit coefficient of each variable.

Reference no: EM133188602

Questions Cloud

What other qualitative factors would you recommend : What other qualitative factors would you recommend that Frontier managers consider before making a decision? Describe at least 4 factors
What is the yield to maturity of the bond : The spot rate of a bond for three years is respectively 4%, 6% and 7% and a redeeming value of Rs 990. What is the yield to maturity of the bond
What are your strategies to know which stock to buy or sell : What are your strategies to know which stock to buy or sell? When buying a stock, how do you measure the number of shares you will invest
Briefly explain the concept of decision trees : Develop a cohesive and convincing story that describes the process of finding the key features of a top beer.
Determine the optimal mix of products : Determine the optimal mix of products in terms of maximizing contributions to profits for the period. Then, find the range of optimality for profit coefficient
Explain the consultation process : Show understanding of topic, Cert IV Leadership and Management, BSBLDR413 - Lead effective workplace relationships
How much is net sales revenue : A company had the following selected account balances at year-end: Sales returns and allowances $1,000. How much is net sales revenue
What price will your bond sell for : Two years from now, the YTM on your bond has declined by 1 percent and you decide to sell. What price will your bond sell for
Write a detailed review and analysis of waveform-coding : Write a detailed review and analysis of waveform-coding techniques used in digital audio transmission and recording. Describe in clear details the techniques

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What are the budgeted cash receipts from sales

sales on account are busters to be $175,000 for may and $225,000 for june what are the budgeted cash receipts from sales on account for june

  Explain the law of demand

Explain the law of demand. Give a specific product or service from your own experience as an example. Why do you think demand increases or decreases

  Why are top management support involvement crucial

Why are top management support and cross-functional involvement crucial when attempting to implement an activity-based costing system?

  How might consulting fees affect auditor independence

How might consulting fees affect auditor independence? What other conflicts of interest might exist for auditors? How do conflicts impact the governance process

  Find which type of firm uses process costing

Find Which type of firm uses process costing? firm that provides personal servicesc. a retailerd. a manufacture a firm which mass produces

  What is the unit cost below which forever ready company

What is the unit cost below which Forever Ready Company should not go in bidding on the government contract? Accepting Business at a Special Price

  Calculate break-even point in terms of both units and sales

The selling price is $500 per unit and there are fixed expenses of $10,000 per month. Calculate Break-even point in terms of both units and sales

  What is the hydronium ion concentration in an aqueous nitric

What is the hydronium ion concentration in an aqueous nitric acid solution that has a pOH of 12.670? What is the pH of an aqueous solution of 4.22×10-2 M.

  Explain in detail three types of cybercrime methods used

Explain in detail three types of cybercrime methods used by cybercriminals and how effective it can be? A report released by Australian National Audit Office

  How many workers should the firm employ to maximize profits

What is the minimum product price at which the firm will operate in the short run? How many workers should the firm employ to maximize profits?

  Find the actual number of direct labor hours worked

Find the actual number of direct labor hours worked during July. First, find the actual direct labor rate per hour. Then, determine the actual number

  Describe major sources of spontaneous short-term financing

What impact, if any, will "stretching" the accounts payable (net period only) of supplier 3 by 30 days, have on your answer to part b with regards to supplier 3

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd