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
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