Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows. Machine Component Shaper Grinder 1 6 4 2 4 5 4 2 3 The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than 200 units of component 3 can be sold, but up to 800 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The per unit selling price and per unit variable costs for each of the three components are as follows. Component Selling Price Material Cost Labor Cost 1 $25 $12 $5 2 $18 $8 $4 3 $27 $13 $5 (a) For each component, calculate the profit margin (in dollars, profit margin selling price - material cost - labor cost). component 1 $ component 2. $ component 3 $ Formulate and solve for the recommended production quantities that will maximize contribution to profit. component 1 units component 2 units component 3 units Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows. Machine Component Shaper Grinder 1 6 4 2 4 5 4 2 3 The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than 200 units of component 3 can be sold, but up to 800 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The per unit selling price and per unit variable costs for each of the three components are as follows. Component Selling Price Material Cost Labor Cost 1 $25 $12 $5 2 $18 $8 $4 3 $27 $13 $5 (a) For each component, calculate the profit margin (in dollars, profit margin selling price - material cost - labor cost). component 1 $ component 2. $ component 3 $ Formulate and solve for the recommended production quantities that will maximize contribution to profit. component 1 units component 2 units component 3 units
Expert Answer:
Answer rating: 100% (QA)
To calculate the profit margin for each component we subtract the material cost and labor cost from ... View the full answer
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
Posted Date:
Students also viewed these finance questions
-
Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine...
-
ABC Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are...
-
B sold shares of a qualified small business corporation (QSBC) in the current year realizing a capital gain of $640,000 and shares of a public company realizing a loss of $40,000. B has a net capital...
-
Allied Fund, a charitable organization exempt under 501(c)(3), has branches located in each of the 50 states. Allied is not a private foundation. Rather than having each of the state units file an...
-
Are movie admissions related to ethnicity? A 2014 study indicated the following numbers of admissions (in thousands) for two different years. At the 0.05 level of significance, can it be concluded...
-
Determine the largest length of a structural A-36 steel rod if it is fixed supported and subjected to an axial load of \(100 \mathrm{kN}\). The rod has a diameter of \(50 \mathrm{~mm}\). Use the AISC...
-
Bohrer, CPA is considering the following factors in assessing audit risk at the financial statement level in planning the audit of Waste Remediation Services (WRS), Inc.'s financial statements for...
-
A data analyst wants to create documentation for their cleaning process so other analysts on their team can recreate this process. What tool can help them create this shareable report?
-
Develop five detailed, comprehensive, SMART performance objectives for a Payroll Manager position, and five for the Payroll Administrator position that can be used to measure success. Provide...
-
The Apply the Concept feature explains that there are both positive and normative aspects to the debate over whether the federal government should enact tariffs on imports of cars from Mexico. What...
-
According to an article in the Wall Street Journal, Staples Inc., an office supply store, has found a new use for some of its roomy office-supply stores: make parts of them into offices. Because many...
-
On a shopping trip, Melanie decided to buy a light blue coat that had a price tag of $79.95. When she brought the coat to the stores sales clerk, Melanie was told that the coat was on sale, and she...
-
An economist for the Brookings Institution argued that a price on carbon would minimize the cost of steering economic activity away from the greenhouse gas emissions that threaten the climate. a. In...
-
Corrs Wholesalers Co. sells industrial equipment for a standard 3-year note receivable. Revenue is recognized at time of sale. Each note is secured by a lien on the equipment and has a face amount...
-
Prepare a paper that addresses the following topics : *What roles do accountants play in managing government and not-for-profit organizations? *How are government and not-for-profit organizations...
-
a. What is the cost of borrowing if Amarjit borrows $28 500 and repays it over a four-year period? b. How many shares of each stock would he get if he used the $28 500 and invested equally in all...
-
ASW Publishing, Inc., a small publisher of college textbooks, must make a decision regarding which books to publish next year. The books under consideration are listed in the following table, along...
-
A chemical processing plant has a network of pipes that are used to transfer liquid chemical products from one part of the plant to another. The following pipe network has pipe flow capacities in...
-
Shown is a probability distribution for the random variable x. x f(x) 3 .......0.25 6 ........0.50 9 .......0.25 Total 1.00 a. Compute E(x), the expected value of x. b. Compute 2, the variance of x....
-
Using data from a random sample of elementary schools, a researcher regresses average test scores on the fraction of students who qualify for reduced-price meals. The regression indicates a negative...
-
In the study of cigarette demand in this chapter, suppose we used as an instrument the number of trees per capita in the state. Is this instrument relevant? Is it exogenous? Is it a valid instrument?
-
In the demand curve model of Equation (12.3), is \(\ln \left(P_{i}^{\text {butter }} ight)\) positively or negatively correlated with the error, \(u_{i}\) ? If \(\beta_{1}\) is estimated by OLS,...
Study smarter with the SolutionInn App