The machine time constraint

Reference no: EM1348658

A company produces three products. Data concerning the selling prices and unit costs of the three products appear below:

A B C
Selling price $40 $50 $90
Variable Costs 30 40 60
Machine Time 4 min 5 min 10 min

The fixed costs incurred in the factory are $100,000 per year. Demand for the three products exceed the company's productive capacity. The machine time is the constraint, with only 3,000 minutes of machine time available this week.

1. Given the machine time constraint, which product would be emphasized?
2. Assuming there is still unfilled demand for the product that the company should emphasize in part 1. above, up to how much should the company be willing to pay for an additional hour of machine time?

Reference no: EM1348658

Questions Cloud

Elucidate use blue points circle symbol to plot the federal : Elucidate use blue points (circle symbol) to plot the federal debt as a percentage of nominal GDP for each of the six years.

Clinical trial of a placebo : What does it indicate about the mind-body interaction if during a clinical trial a placebo were to demonstrate the desired response in 30% of the subjects?

What are your thoughts regarding the aspects : What are your thoughts regarding the aspects that I have highlighted above? Please write a follow up response according to this short discussion based on this question.

First stage allocation of overhead costs : Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Compute the activity rates for the activity cost pools. Prepare a report showing the overhead costs for the order from Shenzhen Enterprises including c..

The machine time constraint : A corporation produces three products. Information concerning the selling prices and unit costs of the three products appear below:

Image of the butterfly in the mirror : A 1.0 kohm resistor is connected in series with a 10 mH inductor, a 30 V battery, and an open switch. at time t=0, the switch is suddenly closed. What are the voltage drops Vr and Vl 20.00 us after the switch is closed.

Introduction to single-case design : The single-case design is not only used in controlled clinical research. It is also informally applied by the physicians we see every day.

Effect of language - conflict and personality on teams : What possible conflicts could arise when the group does not come to a consensus as to who is in and who should be out of the group?

Forging department-cost per equivalent units : The following information concerns production in the Forging Department for June. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inven..

User Account

All Pages