Question
In: Statistics and Probability
A company produces six products in the following manner. Each unit of raw material purchased yields...
A company produces six products in the following manner. Each unit of raw material purchased yields 4 units of product 1, 2 units of product 2, and 1 unit of product 3. Up to 1200 units of product 1 can be sold and up to 300 units of product 2 can be sold. Demand for products 3 and 4 is unlimited. Each unit of product 1 produced from raw material can be sold or processed further. Each unit of product 1 that is processed further yields 1 unit of product 4. Each unit of product 2 can be sold or processed further. Each unit of product 2 that is processed further yields 0.8 unit of product 5 and 0.3 unit of product 6.
For products 3 through 6, the production cost is additional to the costs already incurred.
Up to 1000 units of product 5 can be sold, and up to 800 units of product 6 can be sold. Up to 3000 units of raw material can be purchased at $6 per unit. Leftover units of products 5 and 6 must be destroyed. It costs $4 to destroy each leftover unit of product 5 and $3 to destroy each leftover unit of product 6. The selling price and production cost per unit of each product is provided in the table. The cost of raw material is irrelevant to solving this problem and is ignored in the costs provided.
Determine a profit-maximizing production schedule.
MICROSOFT EXCEL SOLVER SOLUTION PLEASE!!!!!!! The other solutions listed for this problem are incorrect.
| Product | Units produced per unit of raw material used | Units produced per unit of Product 1 processed further | Units produced per unit of Product 2 processed further | Max Dem | Selling price | Production cost |
| 1 | 4 | 1200 | 7 | 4 | ||
| 2 | 2 | 300 | 6 | 4 | ||
| 3 | 1 | No limit | 4 | 2 | ||
| 4 | 1 | No limit | 3 | 1 | ||
| 5 | 0.8 | 1000 | 20 | 5 | ||
| 6 | 0.3 | 800 | 35 | 5 | ||
| 3000 | Units of raw material available to purchase | |||||
| $6 | Cost per unit of raw material | |||||
| $4 | Cost to destroy excess Product 5 | |||||
| $3 | Cost to destroy excess Product 6 | |||||
Solutions
orchestra answered 1 year agoRelated Solutions
Rustica Ltd. uses one raw material for one of their products. The standard cost per unit...
Rustica Ltd. uses one raw material for one of their products.
The standard cost per unit at the beginning of the year was £28,
made up as follows:
Standard material cost per unit = 7 kg per unit @ £4 per kg =
£28
In the middle of the year, the supplier had changed the
specification of the material slightly due to problems experienced
in the country of origin, so that the standard had to be revised as
follows:
Standard...
WP Corporation produces products X, Y, and Z from a single raw material input in a...
WP Corporation produces products X, Y, and Z from a single raw
material input in a joint production process. Budgeted data for the
next month is as follows:
Product X
Product Y
Product Z
Units produced
1,900
2,400
3,400
Per unit sales value at split-off
$
17.00
$
21.00
$
19.00
Added processing costs per unit
$
2.00
$
4.00
$
4.00
Per unit sales value if processed further
$
22.00
$
22.00
$
27.00
The cost of the joint...
WP Corporation produces products X, Y, and Z from a single raw material input in a...
WP Corporation produces products X, Y, and Z from a single raw
material input in a joint production process. Budgeted data for the
next month is as follows:
Product X
Product Y
Product Z
Units produced
1,900
2,400
3,400
Per unit sales value at
split-off
$
14.00
$
18.00
$
19.00
Added processing costs per
unit
$
4.00
$
6.00
$
6.00
Per unit sales value if
processed further
$
23.00
$
23.00
$
28.00
The cost of the joint...
1. A company manufactures a product from a raw material, which is purchased at ` 54...
1. A company manufactures a product from a raw material, which
is purchased at ` 54 per kg. The company incurs a handling cost of
` 350 plus freight of ` 400 per order. The incremental carrying
cost of inventory of raw material is Re. 0.50 per kg per month. In
addition, the cost of working capital finance on the investment in
inventory of raw material is `8 per kg per annum. The annual
production of the product is 94,500...
"La Yuca" company produces raw material for the alcapurrias industry. It has fixed weekly costs of $ 4,000.00 plus variable costs per unit of $ 3.00. The raw material is sold in the market for $ 20.00 per package.
"La Yuca" company produces raw material for the alcapurrias industry.
It has fixed weekly costs of $ 4,000.00 plus variable costs per unit of $ 3.00. The raw material is sold in the market for $ 20.00 per package.
a) determine the total cost to produce # 2,000 packages
b) determine the cost per unit, average cost, for the # 2,000 packages
c) How much can the fixed cost go down if you want to make a profit of $ 3,000.00 per week?
4. Suppose that, over a period, the average raw material unit cost was $ 4.85 and...
4. Suppose that, over a period, the average raw material unit
cost was $ 4.85 and the average conversion cost was $ 9.15. At the
end of the period, there were 600 units in process, with 100% of
the raw material and 65% of the conversion costs. How much is the
balance of the inventory of goods in process at the end of the
period?
to. $ 6,479 b. $ 8,400 c. $ 5,460 d. $ 5,850
5. A company...
Lester Company processes a raw material called Wizon until the splitoff point were it becomes products...
Lester Company processes a raw material called Wizon until the
splitoff point were it becomes products X, Y, and Z. Product X is
sold at the splitoff point with no further processing. Products Y
and Z require further processing to finish them before they can be
sold. The following is a summary of costs and other related data
for the year ending December 31, 2020.
Joint costs before the splitoff point $240,000
Separable Joint costs after splitoff to complete “Y”...
A company produces two products XML, and ZML using two types of raw materials K and...
A company produces two products XML,
and ZML using two types of raw materials K and Q. The accountant is
preparing budgets for the year ended 31 December 2012. Expectations
for 2012 include the following:
Production and Sales
XML
ZML
Budgeted sales in
units
6
000
4 800
Budgeted unit selling
price
$500
$1 000
Opening stock finished goods
In
units
600
700
In
dollars
$144 000 $182 000
Budgeted closing stock...
Ruby Company produces a chair for which the standard specifies 3 yards of material per unit....
Ruby Company produces a chair for which the standard specifies 3
yards of material per unit. The standard price of one yard of
material is $10.40. During the month, 5,900 chairs were
manufactured, using 17,300 yards at a cost of $9.78 per yard.
Determine the following: Enter favorable variances as negative
numbers.
a. Direct materials price variance
$
b. Direct materials quantity variance
$
c. Total direct materials cost variance
$
1. Bus, Inc. produces 2 products, A and B, each requiring direct material and labor. Product A...
1. Bus, Inc. produces 2 products, A and B, each requiring direct
material and labor. Product A sells for $10 each and
Product B sells for $15 each. It takes workers 3 hours
to make a unit of A and 1 hour to make a unit of B. It
takes 2 pounds of materials to make a unit of A and 4 pounds to
make a unit of B. Total labor available is 200 hours;
total material available is 300 pounds. The variable
costs associated...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1. Consider the following nuclides: &
- In general, teams can be described three ways. Name and define each.
- JAVASCRIPT: Please create an array of student names and another array of student grades. - Create...
- Topic - Construction: Structural, loads, tension 1.) Explain why pure tension members are the most efficient...
- Procter and Gamble (PG) paid an annual dividend of $ 1.62$1.62 in 2009. You expect PG...
- locate a recent case of online child pornography. Write a summary of the incident and describe...
- #Python 5. Write function called evaluate() that evaluates the following Python expressions or assignments as specified:...
ADVERTISEMENT