Question: 1. Summarize which product (circle and square) uses how much of each A or B 2. Which is the bottleneck resource? 3.Calculate the contribution margin
1. Summarize which product (circle and square) uses how much of each A or B
2. Which is the bottleneck resource?
3.Calculate the contribution margin of each product and the ratio (CM/Time on bottleneck)
4. Calculate the weekly contribution margin and quantity produced for both circles and squares.
Process X at A Circles Purchase X Assemble x with YZ at B for 5 minutes 20 minutes $10 Max demand 100/week Price $100 Process Y at B Purchase Y 10 minutes Squares $20 Assemble z with YZ for A for 5 minutes Max demand 200/week Process Z at A 15 minutes Price $75 Purchase Z $5 Assume 2400 minutes (40 hours/week) of capacity in both resource A and BStep by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
