Question

In: Accounting

Buzz Appliances manufactures two? products: Food Processors and Espresso Machines. The following data are? available: Food...

Buzz Appliances manufactures two? products: Food Processors and Espresso Machines. The following data are? available:

Food Processors

Espresso Makers

Sales price

$135.00

$225.00

Variable costs

$80.00

$160.00

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The? company's production capacity is 1,300

machine hours per month. The company has demand of 3,000 espresso machines. How many espresso machines and food processors should they produce based on demand and available machine? hours?

Solutions

Expert Solution

Productions
Food processors 600 Units
Espresso Makers 3,000 Units

Working:

a. Food Processors Espresso Makers
Sales Price a $ 135.00 $ 225.00
variable costs b $    80.00 $ 160.00
Contribution Margin c=a-b $    55.00 $    65.00
Machine hours per unit d 1/2 1/3
Contribution per machine hours c/d $ 110.00 $ 195.00
Ranking II I
b. Distribution of Available Machine hours:
Product Supply(in units) Machine hours per unit Total Machine Hours Balance (Machine hours)
Espresso Makers 3000 1/3 1000 300
Food Processors 600 1/2 300 (balancing) 0
c. Production
Food Processors            600 Units
Espresso Makers         3,000 Units

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Buzz Appliances manufactures two​ products: Food Processors and Espresso Machines. The following data are​ available: Food...
Buzz Appliances manufactures two​ products: Food Processors and Espresso Machines. The following data are​ available: Food Processors Espresso Makers Sales price $ 155.00$155.00 $ 245.00$245.00 Variable costs $ 70.00$70.00 $ 170.00$170.00 The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The​ company's production capacity is 1 comma 7001,700 machine hours per month.The company has demand of 2 comma 1002,100 espresso machines. How many espresso machines and food processors should they produce based...
Buzz Appliances manufactures two​ products: Food Processors and Espresso Machines. The following data are​ available: Food...
Buzz Appliances manufactures two​ products: Food Processors and Espresso Machines. The following data are​ available: Food Processors Espresso Makers Sales price $ 165.00$165.00 $ 275.00$275.00 Variable costs $ 60.00$60.00 $ 180.00$180.00 The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The​ company's production capacity is 1 comma 6001,600 machine hours per month. The company has demand of 1 comma 2001,200 espresso machines. How many espresso machines and food processors should they produce...
Healthier Living Company manufactures two products, toaster ovens and bread machines. The following data are available:...
Healthier Living Company manufactures two products, toaster ovens and bread machines. The following data are available: toaster ovens bread machines sales price $80 $150 variable costs $40 $100 Healthier Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Healthier Living's production capacity is 1,800 machine hours per month. Marketing limitations indicate that Healthier Living can sell a maximum of 5,000 toasters a month, and 4,000 bread machines per month. Which product and how...
Table 6 Easy Cook Company manufactures two products: toaster ovens and bread machines. The following data...
Table 6 Easy Cook Company manufactures two products: toaster ovens and bread machines. The following data are available: Toaster Ovens Bread Machines Sale price $60 $135 Variable costs 38 62 The company can manufacture five toaster ovens per machine hour and three bread ovens per machine hour. The company’s production capacity is 1,500 machine hours per month. Refer to Table 6. To maximize profits, the company should produce ________.
Lie Around Furniture manufactures two​ products: Couches and Beds. The following data are​ available: Couches Beds...
Lie Around Furniture manufactures two​ products: Couches and Beds. The following data are​ available: Couches Beds Sales price $ 510.00 $ 710.00 Variable costs $ 370.00 $ 395.00 The company can manufacture 3 couches per machine hour and 2 bed per machine hour. The​ company's production capacity is 2 100 machine hours per month. To maximize​ profits, what product and how many units should the company produce in a​ month?
The Ultimate Chef Ltd manufactures food processors.  Their standard cost information for one food processor is: £...
The Ultimate Chef Ltd manufactures food processors.  Their standard cost information for one food processor is: £ Materials 2kg @ £9.00 per kg 18 Direct Labour 1 hours @ £16.00 per hour 16 Variable overheads 1.5 hours @ £12.00 per hour 18 £52 Budget information for November 2019: Budgeted selling price per food processor is £85. Budgeted sales volume was 3,000 units. Actual information for November 2019: 3,400 units were produced and sold generating £272,000 revenue. 6,100kg of materials were used...
Pet Food Your company manufactures two products, bird food and dog food. You have two departments:...
Pet Food Your company manufactures two products, bird food and dog food. You have two departments: blending and packaging. The requirements in each department for manufacturing a ton of either product are shown in hours in the following table: Hours per Tons of Product Blending          Packaging Bird food         0.25                      0.10 Dog food          0.15                      0.30 Each department has 8 hours available per day. Bird food is made from the three ingredients: seeds, ground stones, and cereal. Dog food...
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...
The Jersey Chemical Company manufactures two industrial chemical products, called Zanide and Kreolite. Two machines are...
The Jersey Chemical Company manufactures two industrial chemical products, called Zanide and Kreolite. Two machines are used in the process, and each machine has 24 hours of capacity per day. The following data are available: Zanide Kreolite Selling price per drum $36 $42 Variable cost per drum $28 $28 Hours required per drum on machine I 2 hours 2 hours Hours required per drum on machine II 1 hour 3 hours The company can produce and sell partially full drums...
Many food manufacturers fortify their food products by adding vitamins. The following data are the amounts...
Many food manufacturers fortify their food products by adding vitamins. The following data are the amounts of vitamin C measured in mg/100g of corn soy blend for a random sample of size 8. Sample points: 26   31   23   22   11   22   14   31 The US Agency for International Development specifies a mean vitamin C content of 30 mg. Test the hypothesis that mean vitamin C content does not conform to these specifications at significance level 5%. (s=7.19) Decision:          ...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT