A company makes two produts A and B, using a CNC milling machine which is classified as a single resource pool. The resource is available for 900 minutes per day. The contribution margins for product A and B are $20 and $35 per unit respectively. The unit loads are 10 and 20 minutes per unit.

The company wishes to produce a mix of 60% As and 40% Bs. What is the effective capacity (units per day)?

The unit load of the mix is 60%*20 +40%*10 = 16 minutes per unit. The capacity is 900/16 = 56.3 units per day

The unit load of the mix is 60%*20 +40%*35 = 26 minutes per unit. The capacity is 900/26 = 34.6 units per day

The unit load of the mix is 60%*10 +40%*20 = 14 minutes per unit. The capacity is 900/14 = 64.3 units per day

The unit load of the mix is 60%*35 +40%*20 = 29 minutes per unit. The capacity is 900/29 = 31.0 units per day

A company makes two products A and B, using a CNC milling machine which is classified as a single resource pool. The resource is available for 900 minutes per day. The contribution margins for product A and B are $20 and $35 per unit respectively. The unit loads are 10 and 20 minutes per unit.

The company wishes to produce a mix of 60% As and 40% Bs. 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.

$1,508.43 per day

$1,899.03 per day

$1,671.42 per day

$1,775.32 per day

Three hairstylists, Tom, Jane, and Ben, run Kern Hair Salon for busy professionals in downtown Bakersfield. They stay open from 6:45 a.m. to 9:00 p.m. to accommodate as many people's work schedules as possible. They perform only shampooing and hairstyling activities. On average, it takes 10 minutes to shampoo, 15 minutes to style the hair, and 5 minutes to bill the customer. When a customer arrives, he or she first checks in with the receptionist (Tom's sister Chloe). This takes only 3 minutes. One of the three stylists then takes charge of the customer and performs all three activities - shampooing, styling and billing - consecutively.

What is the number of customers that can be served per hour in this hair salon?

2 customers

3 customers

6 customers

30 customers