> Moving to another question wil savers response uestion 13 The constraint at Vr

ID: 2430419 • Letter: #

Question

> Moving to another question wil savers response uestion 13 The constraint at Vrana Inc. is an expensive milling machine The three products listed below use this constrained resource JH KW DF 404 58 $47874 $ 358.44 Seling Price Per Unit Variable Cost Per Unit Time on the Milling Machine Monthly Demand Units Prepare a schedule to determine the rank of each of the products, then answer the 5.80 7,500 following questions by selecting the correct answer from the drop-down box yhat is the contribution margin per unit for JH? What is the contribution margin per unit for KW? What is the contribution margin per unit for DF? t is the coetribution margin per unit of the constrained resource fcr JH? What is the contribution margin per unit of the constrained resource for KW? What is the cpntribution margin per unit of constrained resource for DF How many hours of machine time i What is the rank of the products, I order of their curment profitabaty? A 595.70 2.511 ? $13 60 D 5756.00 E $14 50 F $73.08 G $107.44 s necessary to satsty the dem and for all products? $12.60 if there is suflicient time available to salisty demand for all but the least prottabie product, what is the maximum the copmany will pay to acquire one more hour of the comstrained resource? ? Moving to another queston wil save this response.

Explanation / Answer

Selling price per unit

404.58

478.74

358.44

Variable cost per unit

308.88

371.30

285.36

Contribution margin

95.7

107.44

73.08

Time for milling machine

6.6

7.9

5.8

Contribution margin for constrained resource

14.5

13.6

12.6

Total hours of machine time necessary to satisfy demand for all products

TOTAL

Demanded units

7500

8400

6000

Time on milling machine

6.6

7.9

5.8

Total time required for each product

49500

66360

34800

150660

Total hours

150660 / 60 = 2511 hours

2511

What is the contribution margin per unit for JH

95.7

What is the contribution margin per unit for KW

107.44

What is the contribution margin per unit for DF

73.08

What is the contribution margin per unit of constrained resource for JH

14.5

What is the contribution margin per unit of constrained resource for KW

13.6

What is the contribution margin per unit of constrained resource for DF

12.6

How many hours of machine time is necessary to satisfy the demand