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 | |||||
| $3 | Cost to destroy excess Product 6 | |||||
Solutions
orchestra answered 1 year agoRelated Solutions
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made up as follows:
Standard material cost per unit = 7 kg per unit @ £4 per kg =
£28
In the middle of the year, the supplier had changed the
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in the country of origin, so that the standard had to be revised as
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Product X
Product Y
Product Z
Units produced
1,900
2,400
3,400
Per unit sales value at split-off
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$
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
$
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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
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Product X
Product Y
Product Z
Units produced
1,900
2,400
3,400
Per unit sales value at
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14.00
$
18.00
$
19.00
Added processing costs per
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$
4.00
$
6.00
$
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Per unit sales value if
processed further
$
23.00
$
23.00
$
28.00
The cost of the joint...
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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
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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...
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Determine the following: Enter favorable variances as negative
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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...
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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
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