What is the effective capacity

Reference no: EM131928340

Question: A company makes two products A and B, using a single resource pool. The resource is available for 900 minutes per day. The contribution margins for A and B are $20 and $35 per unit respectively. The unit loads are 10 and 20 minutes per unit.

a. Which product is more profitable?

b. The company wishes to produce a mix of 60% As and 40% Bs. What is the effective capacity (units per day)?

c. At the indicated product mix, what is the financial capacity (profit per day)?

Reference no: EM131928340

Questions Cloud

What is net cash flow from operating activities for period : What is the net cash flow from operating activities for the period? What is the amount of net cash flow from investing activities?

What was the percentage increase per year : Required: (a) What was the percentage increase per year in the winner's check over this period? (Click to select)

What is the future value of all the cash flows : You have $50,000 in your bank account. You plan to save $5,000 at the end of each year for the next 10 years. The interest rate is 8% per annum.

Appreciate at a percent annual rate : Your coin collection contains 48 1953 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection

What is the effective capacity : A company makes two products A and B, using a single resource pool. The resource is available for 900 minutes per day. The contribution margins for A and B.

Downfalls of not keeping a household budget : Identify three primary business decisions that financial managers must make. What are some of the downfalls of not keeping a household budget?

What is the ending cash account balance : The net cash flow provided by operating activities is an inflow of $46,042, net cash flow used in investing activities. What is the ending cash account balance?

What is the dollar value for the bond : There is a 5.8 percent coupon bond with eleven years to maturity and a current price of $1,059.80. What is the dollar value of an 01 for the bond?

Determine the net present value of the project : Determine the net present value of the project and the present value index. If required, use the minus sign to indicate a negative net present value.

User Account

All Pages