Question
In: Advanced Math
Friendly Co. produces two products, A and B. The sales volume for A is at least...
Friendly Co. produces two products, A and B. The sales
volume for A is at least 80% of the total
sales of both A and B. However, the company cannot sell more than
110 units of A per day. Both
products use one raw material, of which the maximum daily
availability is 300 kg. The usage
rates of the raw material are 2 kg per unit of A, and 4 kg per unit
of B. The profit units for A and
B are $40 and $90, respectively.
Formulate the above problem as a linear programming problem. Then
solve the problem to
determine the most optimal product mix for the company.
Solutions
Colby Messinger answered 2 years agoRelated Solutions
Mattison manufactures two products: A and B. The company predicts a sales volume of 20,000 units...
Mattison manufactures two products: A and B. The company
predicts a sales volume of 20,000 units for product A and desired
ending finished-goods inventory of 1,000 units. These numbers for
product B are 25,000 and 3,000, respectively. Mattison currently
has 7,000 units of A in inventory and 9,000 units of B. The unit
selling price for A and B are $250 and $200 respectively.
The following raw materials are required to manufacture these
products:
Raw Material
Cost Per Pound
Required...
Mattison manufactures two products: A and B. The company predicts a sales volume of 20,000 units...
Mattison manufactures two products: A and B. The company
predicts a sales volume of 20,000 units for product A and desired
ending finished-goods inventory of 1,000 units. These numbers for
product B are 25,000 and 3,000, respectively. Mattison currently
has 7,000 units of A in inventory and 9,000 units of B. The unit
selling price for A and B are $250 and $200 respectively.
The following raw materials are required to manufacture these
products:
Raw Material
Cost Per Pound
Required...
Mattison manufactures two products: A and B. The company predicts a sales volume of 20,000 units...
Mattison manufactures two products: A and B. The company
predicts a sales volume of 20,000 units for product A and desired
ending finished-goods inventory of 1,000 units. These numbers for
product B are 25,000 and 3,000, respectively. Mattison currently
has 7,000 units of A in inventory and 9,000 units of B. The unit
selling price for A and B are $250 and $200 respectively.
The following raw materials are required to manufacture these
products:
Raw Material
Cost Per Pound
Required...
Prime Co. produces two products, A and B. The unit revenues are $2 and $3, respectively....
Prime Co. produces two products, A and B. The unit
revenues are $2 and $3, respectively. Two
raw materials, M1 and M2, used in the manufacture of the two
products have daily availabilities
of 8 and 18 units, respectively. One unit of A uses 2 units of M1
and 2 units of M2, while one
unit of B uses 3 units of M1 and 6 units of M2.
(a) Using simplex method, determine the dual prices of M1 and M2...
Hayden, Inc. produces two different products, Product A and Product B. Hayden uses a traditional volume-based...
Hayden, Inc. produces two different products, Product A and
Product B. Hayden uses a traditional volume-based costing system in
which direct labor hours are the allocation base. Hayden is
considering switching to an ABC system by splitting its
manufacturing overhead cost across three activities: Engineering,
Manufacturing, and Inspection. The cost of each activity and usage
of the activity drivers are as follows:
Cost
Usage by Product A
Usage by Product B
Engineering (Engineering Hours)
$
990,000
4,600
5,400
Manufacturing (Direct...
Rockford Company produces two different products, Product A and Product B. Rockford uses a traditional volume-based...
Rockford Company produces two different products, Product A and
Product B. Rockford uses a traditional volume-based costing system
in which direct labor hours are the allocation base. Rockford is
considering switching to an ABC system by splitting its
manufacturing overhead cost across three activity pools: Setup,
Production, and Finishing. The cost of each activity and usage of
the activity drivers are as follows:
COST
Usage by Product A
Usage by Product B
Setup (Batches)
$68,000
330 batches
170 batches
Production...
A company produces three different type of chocolates. A, B, and C. The sales volume for...
A company produces three different type of chocolates. A, B, and
C. The sales volume for A is at least 50 % of the total sales of
all three chocolates. However, the company cannot sell more than 75
units of A per day. The three types of chocolate use one raw
material, of which the maximum daily availability is 240 lb. The
usage rates of the raw material are 2 lb per unit of A, 4 lb per
unit of...
Data on the two products are as follows : Alpha BETA Sales in volume in units...
Data on the two products are as follows :
Alpha
BETA
Sales in volume in units
520
420
units sale price
$300
$400
units variable cost
200
240
units contribution margin
$100
$160
Total fixed costs for the manufacture of both products are
$100,000.
Assuming that sales mix in terms of unit remains constant, what is
the breakeven point in total revenue dollars?
Henna Co. produces and sells two products, T and O. It manufactures these products in separate...
Henna Co. produces and sells two products, T and O. It
manufactures these products in separate factories and markets them
through different channels. They have no shared costs. This year,
the company sold 43,000 units of each product. Sales and costs for
each product follow.
Product T
Product O
Sales
$
761,100
$
761,100
Variable costs
608,880
76,110
Contribution margin
152,220
684,990
Fixed costs
33,220
565,990
Income before taxes
119,000
119,000
Income taxes (30% rate)
35,700
35,700
Net income
$...
Letter Co. produces and sells two products, T and O. It manufactures these products in separate...
Letter Co. produces and sells two products, T and O. It
manufactures these products in separate factories and markets them
through different channels. They have no shared costs. This year,
the company sold 48,000 units of each product. Sales and costs for
each product follow.
Product T
Product O
Sales
$
825,600
$
825,600
Variable costs
577,920
165,120
Contribution margin
247,680
660,480
Fixed costs
113,680
526,480
Profit before taxes
134,000
134,000
Income taxes (32% rate)
42,880
42,880
Net
profit
$...
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