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1. SuperParts, Inc. uses a 3D printing process to produce two products. Data concerning the selling prices, unit costs and printing time of the
1. SuperParts, Inc. uses a 3D printing process to produce two products. Data concerning the selling prices, unit costs and printing time of the two products appear below: Selling price Variable costs Fixed costs 3D printer time Product A $90 60 26 20 min Product B $70 50 9 12 min Fixed costs are applied to the products on the basis of direct labour hours. Demand for the three products exceeds the company's productive capacity. The 3D printer has up to 2,400 minutes of printing time available this week. Required: a) Which product should be emphasized if there is unlimited demand? Support your answer with appropriate calculations. b) If there is still unfilled demand for the product that the company should emphasize in part a) above, up to how much should the company be willing to pay for an additional hour of 3D printer time?
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