Question
In: Accounting
Better Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are...
Better Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are available on each machine. The profit contribution and production time in hours per unit are as follows:
| Category | Product 1 | Product 2 | Product 3 |
| Profit/unit | $30 | $50 | $20 |
| Machine 1 time/unit | 0.5 | 2 | 0.75 |
| Machine 2 time/unit | 1 | 1 | 0.5 |
Two operators are required for machine 1; thus, 2 hours of labor must be scheduled for each hour of machine 1 time. Only one operator is required for machine 2. A maximum of 100 labor-hours is available for assignment to the machines during the coming week. Other production requirements are that product 1 cannot account for more than 50% of the units produced and that product 3 must account for at least 20% of the units produced.
How many units of each product should be produced to maximize the total profit contribution? If required, round your answers to the nearest integer.
| Product | # of units |
|---|---|
| 1 | |
| 2 | |
| 3 |
What is the projected weekly profit associated with your
solution?
$
How many hours of production time will be scheduled on each
machine? If required, round your answers to two decimal
places.
Machine Hours Schedule: Machine 1: hours; Machine
2: hours
What is the value of an additional hour of labor? If required,
round your answer to two decimal places.
$
Assume that labor capacity can be increased to 120 hours. Develop the optimal product mix, assuming that the extra hours are made available. If required, round your answers to the nearest integer.
| Product | # of units |
|---|---|
| 1 | |
| 2 | |
| 3 |
Profit = $
Would you be interested in using the additional 20 hours available
for this resource?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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A
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Exercise 7.30 a-c
Metropole Inc. can produce three different products interchangeably
on two machines. The accounting department provides the following
information on these products:
A
B
C
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$37
$45
Variable costs per unit
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$37
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hour
10
12.5
20
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none
165
Maximum units produced
200
none
220
The total machine hours available are 105.
Determine the number of machine hours per unit for each
product. (Round...
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