REMY A company makes four products that have the following characteristics: The contribution margin for product...
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REMY A company makes four products that have the following characteristics: The contribution margin for product A is $55, for product B is $75, for product C is $70, for product D is $65. The processing time (in minutes) for cach product on each of the four machines is shown in the following table A A B C D W 6 7 4 X Y 2 Demand 5 10 B 2 12 5 10 4 100 120 110 140 Contribution Margin/Unit 55 75 70 65 Machines W, X, Y, and Z are available for 40 hours per week (2400 minutes per week). Markut demand is 100 units for product A, 120 units for product B, 110 units for product C, and 140 units for product D per week 1) Which machine is the bottleneck operation? 2) Using the traditional method, in what sequence should products be produced? 3) Using the bottleneck mothod, in what sequence should products be produced? 4) Using the bottleneck method, what is the optimal product moc? 5) Using the bottleneck method, what is the total profit? REMY A company makes four products that have the following characteristics: The contribution margin for product A is $55, for product B is $75, for product C is $70, for product D is $65. The processing time (in minutes) for cach product on each of the four machines is shown in the following table A A B C D W 6 7 4 X Y 2 Demand 5 10 B 2 12 5 10 4 100 120 110 140 Contribution Margin/Unit 55 75 70 65 Machines W, X, Y, and Z are available for 40 hours per week (2400 minutes per week). Markut demand is 100 units for product A, 120 units for product B, 110 units for product C, and 140 units for product D per week 1) Which machine is the bottleneck operation? 2) Using the traditional method, in what sequence should products be produced? 3) Using the bottleneck mothod, in what sequence should products be produced? 4) Using the bottleneck method, what is the optimal product moc? 5) Using the bottleneck method, what is the total profit?
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Solution Answer 1 The bottleneck operation is the operation that limits the total output of the syst... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Posted Date:
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