Question
Garson, Inc. produces three products. Data concerning the selling prices and unit costs of the three...
Garson, Inc. produces three products. Data concerning the selling prices and unit costs of the three products appear below:
| Product | ||||||
| F | G | H | ||||
| Selling price | $ | 70 | $ | 50 | $ | 80 |
| Variable costs | $ | 45 | $ | 35 | $ | 50 |
| Fixed costs | $ | 40 | $ | 5 | $ | 37 |
| Milling machine time (minutes) | 10 | 5 | 5 | |||
Fixed costs are applied to the products on the basis of direct labor hours.
Demand for the three products exceeds the company's productive capacity. The milling machine is the constraint, with only 2,700 minutes of milling machine time available this week.
Required:
a. Given the milling machine constraint, which product should be emphasized?
b. Assuming that there is still unfilled demand for the product that the company should emphasize in part (a) above, up to how much should the company be willing to pay for an additional hour of milling machine time?
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Wright, Inc. produces three products. Data concerning the selling prices and unit costs of the three...
Wright, Inc. produces three products. Data concerning the
selling prices and unit costs of the three products appear
below:
Product
C
D
E
Selling price
$
85
$
65
$
95
Variable costs
$
60
$
50
$
65
Fixed costs
25
8
22
Tapping machine time
(minutes)
20
5
5
Fixed costs are applied to the products on the basis of direct
labor hours. Demand for the three products exceeds the company's
productive capacity. The tapping machine is the...
Garson, Inc. produces three products. Data concerning the selling prices and unit costs of the three...
Garson, Inc. produces three products. Data concerning the
selling prices and unit costs of the three products appear
below:
Product
F
G
H
Selling price
$
60
$
40
$
70
Variable costs
$
25
$
15
$
30
Fixed costs
$
50
$
5
$
47
Milling machine time
(minutes)
10
5
5
Fixed costs are applied to the products on the basis of direct
labor hours.
Demand for the three products exceeds the company's productive
capacity. The milling...
Information regarding the selling prices and unit costs of three products is as follows: Product F...
Information regarding
the selling prices and unit costs of three products is as
follows:
Product
F
G
H
Selling price
$
55
$
35
$
65
Variable
costs
$
40
$
30
$
45
Fixed costs
$
15
$
4
$
12
Milling machine
time (minutes)
10
2
4
Fixed costs are
applied to the products on the basis of direct labor hours.
Demand for the three
products exceeds the company's productive capacity. The milling
machine is the constraint, with...
Hudson Corporation, a Denver manufacturer produces three products and has provided the following information relating to...
Hudson Corporation, a Denver manufacturer produces three
products and has provided the following information relating to its
selling prices and unit costs for the three products.
Product
Product
Product
A
B
C
Selling price
$50
$80
$70
Variable costs
$40
$50
$55
Fixed costs
$15
$20
$12
Milling machine time (minutes)
4
2
5
Fixed costs are applied on the basis of direct labor hours.
Demand for the three products exceeds the company's production
capacity due to the milling machine's...
Glover Company makes three products in a single facility. These products have the following unit product...
Glover Company makes three products in a single facility. These
products have the following unit product costs:
Product
A
B
C
Direct materials
$
34.60
$
51.10
$
57.50
Direct labor
22.00
24.60
15.40
Variable manufacturing overhead
1.80
1.20
1.10
Fixed manufacturing overhead
11.70
7.30
7.90
Unit product cost
$
70.10
$
84.20
$
81.90
Additional data concerning these products are listed below.
Product
A
B
C
Mixing minutes per unit
1.20
0.80
0.50
Selling price per unit
$
76.00...
Glocker Company makes three products in a single facility. These products have the following unit product...
Glocker Company makes three products in a single facility. These
products have the following unit product costs:
Product
A
B
C
Direct
materials
$
33.20
$
49.70
$
56.10
Direct labor
$
20.60
$
23.20
$
14.00
Variable
manufacturing overhead
$
1.60
$
1.00
$
0.50
Fixed manufacturing
overhead
13.10
8.70
9.30
Unit product
cost
$68.50
$82.60
$79.90
Additional data concerning these products are listed
below.
Mixing minutes per
unit
1.60
0.80
0.10
Selling price per
unit
$
62.00
$...
Brissett Corporation makes three products that use the current constraint, which is a particular type of...
Brissett Corporation makes three products that use the current
constraint, which is a particular type of machine. Data concerning
those products appear below:
GK
LQ
XK
Selling price per unit
$
326.13
$
543.39
$
520.00
Variable cost per unit
$
252.04
$
420.85
$
397.70
Time on the constraint (minutes)
3.90
7.90
8.00
Required:
a. Rank the products in order of their current profitability
from the most profitable to the least profitable. In other words,
rank the products in...
Brissett Corporation makes three products that use the current constraint, which is a particular type of...
Brissett Corporation makes three products that use the current
constraint, which is a particular type of machine. Data concerning
those products appear below:
GK
LQ
XK
Selling price per
unit
$
326.33
$
543.59
$
498.00
Variable cost per unit
$
251.94
$
420.75
$
397.60
Time on the constraint
(minutes)
2.90
6.90
8.00
Required:
a. Rank the products in order of their current profitability
from the most profitable to the least profitable. In other words,
rank the products in...
28. Brissett Corporation makes three products that use the current constraint, which is a particular type...
28.
Brissett Corporation makes three products that use the current
constraint, which is a particular type of machine. Data concerning
those products appear below:
GK
LQ
XK
Selling price per
unit
$
326.33
$
543.59
$
498.00
Variable cost per unit
$
251.94
$
420.75
$
397.60
Time on the constraint
(minutes)
2.90
6.90
8.00
Required:
a. Rank the products in order of their current profitability
from the most profitable to the least profitable. In other words,
rank the products...
Glocker Company makes three products in a single facility. These products have the following unit product...
Glocker Company makes three products in a single facility. These
products have the following unit product costs:
Product
A
B
C
Direct
materials
$
34.50
$
51.00
$
57.40
Direct labor
$
21.90
$
24.50
$
15.30
Variable
manufacturing overhead
$
1.70
$
1.10
$
1.00
Fixed manufacturing
overhead
11.60
7.20
7.80
Unit product
cost
$69.70
$83.80
$81.50
Additional data concerning these products are listed
below.
Mixing minutes per
unit
1.10
0.90
0.40
Selling price per
unit
$
75.00
$...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 3 minutes ago
asked 7 minutes ago
asked 13 minutes ago
asked 26 minutes ago
asked 36 minutes ago
asked 42 minutes ago
asked 49 minutes ago
asked 53 minutes ago
asked 53 minutes ago
asked 53 minutes ago
asked 1 hour ago
asked 1 hour ago