Stacy developed an innovative computer game, called Home By Myself (HBM). It was so successful that...

  

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Stacy developed an innovative computer game, called Home By Myself (HBM). It was so successful that she quickly followed up with two sequels: Home By Myself II (HBM2) and Home By Myself III (HBM3). The costs of developing the games were $96,000 for HBM, $5,500 for HBM2, and $16,500 for HBM3. The production process consists of using her computer to copy the games to blank DVDS and then packing them with printed instructions in a display box. It takes longer to copy the original game than it takes to copy the sequels. Stacy can produce, ready for shipping, about 20 copies of HBM, 30 copies of HBM2, or 45 copies of HBM3 in hour, and she normally works 8 hours per day. HBM 50.30 $ HBM2 30.70 $ 30.70 HBM3 Selling price Costs Blank DVD Instructions and packaging Prorated development costs* Margin Daily demand 1.00 4.50 19.20 25.60 $ 26.60 $ 24.40 120 games 120 games 90 games 0.50 2.50 0.50 2,50 1.10 3.30 "The prorated development costs were determined for each game by dividing the game's development costs by 5,000, the estimated minimum total demand for each game. What is the contribution margin per hour of Stacy's time for each game? (Round all entries to 2 decimal places, e.g. 5.35.) HBM HBM2 HBM3 Contribution margin per hour: $ In what order should Stacy produce the games? Production order: Using the general decision rule for constrained capacity, what is the most Stacy should be willing to pay per hour for a worker to duplicate and pack DVDS after her normal working hours? (Assume that the worker would work at the same pace as Stacy.) (Round entry to 2 decimal places, e.g. 5.35.) Willing to pay: s per hour Stacy developed an innovative computer game, called Home By Myself (HBM). It was so successful that she quickly followed up with two sequels: Home By Myself II (HBM2) and Home By Myself III (HBM3). The costs of developing the games were $96,000 for HBM, $5,500 for HBM2, and $16,500 for HBM3. The production process consists of using her computer to copy the games to blank DVDS and then packing them with printed instructions in a display box. It takes longer to copy the original game than it takes to copy the sequels. Stacy can produce, ready for shipping, about 20 copies of HBM, 30 copies of HBM2, or 45 copies of HBM3 in hour, and she normally works 8 hours per day. HBM 50.30 $ HBM2 30.70 $ 30.70 HBM3 Selling price Costs Blank DVD Instructions and packaging Prorated development costs* Margin Daily demand 1.00 4.50 19.20 25.60 $ 26.60 $ 24.40 120 games 120 games 90 games 0.50 2.50 0.50 2,50 1.10 3.30 "The prorated development costs were determined for each game by dividing the game's development costs by 5,000, the estimated minimum total demand for each game. What is the contribution margin per hour of Stacy's time for each game? (Round all entries to 2 decimal places, e.g. 5.35.) HBM HBM2 HBM3 Contribution margin per hour: $ In what order should Stacy produce the games? Production order: Using the general decision rule for constrained capacity, what is the most Stacy should be willing to pay per hour for a worker to duplicate and pack DVDS after her normal working hours? (Assume that the worker would work at the same pace as Stacy.) (Round entry to 2 decimal places, e.g. 5.35.) Willing to pay: s per hour

Answer rating: 100% (QA)

Exercise 426 HBM HBM2 HBM3 Selling price per hour 5030 3070 3070 Less Variable costs per hour Blank ... View the full answer