1. Scarce Resource Constraint Crest information Technologies manufactures three

Question

1. Scarce Resource Constraint Crest information Technologies manufactures three sizes of copiers: Light, Medium, and Heavy. Demand for the three copiers is as follows: 200 units of Light, 240 units of Medium, and 200 units of Heavy. Crest has 12,000 machine hours available. Product information is provided below: Medium Heavy Selling Price per unit Variable Manufacturing Costs per unit Machine Hours per Unit $300 $180 ) $500 $1,000 $460 100 $300 42143 Fixed manufacturing costs total $60,000. REQUIRED: Determine how many units of each product should be produced and what the total contribution margin associated with your solution is.

Explanation / Answer

Statment of optimum production

Particulars Light medium Heavy Sale Price      300.00                500.00    1,000.00 Less: Variable Manufacturing Cost      180.00                300.00       460.00 Contribution Per Unit (A)      120.00                200.00       540.00 Machine Hours per unit (B)         20.00                  40.00       100.00 Contribution Per labor hour (A/B)           6.00                     5.00            5.40 Rank I III II

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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