The Spartan Manufacturing Company produces products A, B, and C. Although Spartan could sell up to 50
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The Spartan Manufacturing Company produces products A, B, and C. Although Spartan could sell up to 50 units of A, 60 units of B, and 50 units of C each week, a limitation of 400 machine-hours per week prevents Spartan from meeting these sales demands. The product information is as follows:
| A | B | C |
Unit selling price | $240 | $140 | $160 |
Variable manufacturing costs: | $164 | $90 | $102 |
Variable selling and admin. costs | $10 | $10 | $10 |
Machine-hours per unit | 3 | 2 | 4 |
There is no fixed selling or administrative expenses. Fixed manufacturing costs are $3,000 per week.
a. In what order should Spartan allocate manufacturing hours to each product?
b. How many units of each product should be produced each week?
c. How much is Spartan’s weekly profit or loss from implementing this schedule?
Related Book For
Discovering Advanced Algebra An Investigative Approach
ISBN: 978-1559539845
1st edition
Authors: Jerald Murdock, Ellen Kamischke, Eric Kamischke
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