Glunn Company makes three products in a single facility. These products have the

Question

Glunn Company makes three products in a single facility. These products have the following unit revenue and cost data: Additional data concerning these products are listed below. The mixing machines are potentially the constraint in the production facility. A total of 24, 200 minutes are available per month on these machines. How many minutes of mixing machine time would be required to satisfy demand for all three products? Considering the constraint: the constraint: Calculate how much money is made per constraint for all three products. What is the most profitable product? What is the least profitable products? Show your work!

Explanation / Answer

Part 1: Product A: 3.7 * 2000 = 7400 Product B: 3.4 * 4000 = 13600 Product C: 3.9 * 2000 = 7800 7400 + 13600 + 7800 = 28800 min Part 2: Product A: 59 - 49.5 = $9.7 (Least Profitable) Product B: 60 - 45 = $15.1 (Most profitable) Product C: 55.3 - 42.6 = $12.7 Bonus: Product A: 756 units Product B: 4000 units Product C: 2000 units total min for all are 28800 min which is higher than the max per month so you would produce the max of the two products that are more profitable and produce less of the least profitable product. total time for B + C = 21400 min Max time in the month is 24200 so the time difference is 24200 - 21400 = 2800 2800 / 3.7 = 756.757 which rounding is 756 units since rounding up would cause it to go over the max time in the month to run.

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.