Question: A company makes three produts A, B, and C using a CNC lathe machine(s) which is classified as a single resource pool. The resource is

A company makes three produts A, B, and C using a CNC lathe machine(s) which is classified as a single resource pool. The resource is available for 700 minutes per day. The contribution margins for A, B, and C are $20, $35, and $45 per unit respectively. The unit loads are 10, 20, and 25 minutes per unit.

The company wishes to produce a mix of 50% As, 30% Bs, and 20% Cs. At the indicated product mix, what is the financial capacity (profit per day)?

hint: find a weighted margin per unit, then, multiply it by the effective capacity found in previous question.

$1,290.63 per day

$1,654.46 per day

$1,071.42 per day

$1,341.21 per day

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!