Cordova manufactures three types of stained glass window, cleverly named product
ID: 2554895 • Letter: C
Question
Cordova manufactures three types of stained glass window, cleverly named products a, b and c. Information about these products as follows
Cordova manufactures three types of stained glass window, cleverly named ProductsA B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $46.00 22.00 8.00 Product E $56.00 12.25 8.00 1.502.50 Product C $86.00 38.00 8.00 4.00 Cordova currently is limited to 50,000 labor hours per month. Cordova's marketing department has determined the following demand for its products Product A Product B Product C 13,000 units 9,000 units 5,000 units Required: Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit, (Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answer to the nearest whole number.) Product Units ProducedExplanation / Answer
CALCULATION OF CONTRIBUTION PER MACHIENE HOURS PER UNIT Product A Product B Product C Selling Price Per unit $ 46.00 $ 56.00 $ 86.00 Less: Variable Costs $ 22.00 $ 12.25 $ 38.00 contribution Margin (A) $ 24.00 $ 43.75 $ 48.00 Required Number of Hours (B) 1.5 2.25 4 Contribution per unit per hours =(A/B) $ 16.00 $ 19.44 $ 12.00 Ranking on the basis of per minute contribution 1st 2nd 3rd Production shedule be on the basis of Merit of contribution of Per minute Units Minuts Required PEr units Total Minuts Required for production total Minuts Available For Production Balance Hours Product A = 13000 1.5 19500 50000 30500 Product B = 9000 2.25 20250 30500 10250 Product C =(For Balalnce Hours) 2563 4 10250 5550 0 STATEMENT OF UNIT PRODUCED Particulars Units Product A = 13000 Product B = 9000 Product C =(For Balalnce Hours) 2563
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