The constraint at Vrana Inc. is an expensive milling machine. The three products listed below use...

The constraint at Vrana Inc. is an expensive milling machine. The three products listed below use this constrained resource.

	JH	KW	DF
Selling Price Per Unit	$ 404.58	$ 478.74	$ 358.44
Variable Cost Per Unit	$ 308.88	$ 371.30	$ 285.36
Time on the Milling Machine	6.60	7.90	5.80
Monthly Demand - Units	7,500	8,400	6,000

Prepare a schedule to determine the rank of each of the products, then answer the following questions by selecting the correct answer from the drop-down box.

- A. B. C. D. E. F. G. H. I.	What is the contribution margin per unit for JH?
- A. B. C. D. E. F. G. H. I.	What is the contribution margin per unit for KW?
- A. B. C. D. E. F. G. H. I.	What is the contribution margin per unit for DF?
- A. B. C. D. E. F. G. H. I.	What is the contribution margin per unit of the constrained resource for JH?
- A. B. C. D. E. F. G. H. I.	What is the contribution margin per unit of the constrained resource for KW?
- A. B. C. D. E. F. G. H. I.	What is the contribution margin per unit of constrained resource for DF?
- A. B. C. D. E. F. G. H. I.	How many hours of machine time is necessary to satisfy the demand for all products?
- A. B. C. D. E. F. G. H. I.	What is the rank of the products, i order of their current profitability?
- A. B. C. D. E. F. G. H. I.	If there is sufficient time available to satisfy demand for all but the least profitable product, what is the maximum the copmany will pay to acquire one more hour of the constrained resource?

A.	$13.60
B.	#1 - JH; #2 - KW; #3 - DF
C.	$107.44
D.	2,511
E.	$12.60
F.	$95.70
G.	$756.00
H.	$73.08
I.	$14.50

Expert Solution

	JH	KW	DF
Selling Price Per Unit A	$404.58	$478.74	$358.44
Variable Cost Per Unit B	$308.88	$371.30	$285.36
Contribution Margin per unit C=A-B	$95.70	$107.44	$73.08
Time on the Milling Machine D	6.6	7.9	5.8
Contribution margin per unit of contrauned resouse A/D	$14.50	$13.60	$12.60
Rank	1	2	3
Monthly Demand - Units U	7,500	8,400	6,000

	Option
contribution margin per unit for JH?	F
contribution margin per unit for KW?	C
contribution margin per unit for DF?	H
contribution margin per unit of the constrained resource for JH?	I
contribution margin per unit of the constrained resource for KW?	A
contribution margin per unit of constrained resource for DF?	E
hours of machine time is necessary to satisfy the demand for all products?	D
rank of the products, i order of their current profitability?	B
Maximum amount is the contribution margin per constrained resouce for DF	E

If any doubt please comment

ekkarill92 answered 1 year ago

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