Question

Fuller Aerosols manufactures six different aerosol can products ( room deodorants, hair sprays, furniture polish, and so forth) on its fill line. The fill line mixes the ingredients, adds the propellant, fills and seals the cans, and packs the cans in cases in a continuous production process. These aerosol products are then sold to distributors. The following table summarizes the weekly operating data for each product.


Each product has fixed costs that pertain only to that product. If the product is discontinued for the week, the product’s fixed costs are not incurred that week.

Required:
a. Calculate the break-even volume for each product.
b. Suppose the aerosol fill line can operate only 70 hours per week. Which products should be manufactured?
c. Suppose the aerosol fill line can operate only 50 hours per week. Which products should bemanufactured?


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  • CreatedDecember 15, 2014
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