Assume that a car manufacturer produces only four types cars: Model X, Model y, Roadster, and Speedster.
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Question:
Assume that a car manufacturer produces only four types cars: Model X, Model y, Roadster, and Speedster. A limitation of 1,580 microprocessors per week prevents the manufacturer from meeting sales demand for these cars. The product information is presented below:
Model X | Model Y | Roadster | Speedster | |||
Unit Selling Price | 35,750 | 43,500 | 65,000 | 89,125 | ||
Unit Variable Cost | (18,750) | (25,675) | (36,540) | (61,225) | ||
Contribution Margin | 17,000 | 17,825 | 28,460 | 27,900 | ||
Microprocessors per car | 20 | 25 | 32 | 50 |
Required | ||||||
1. Determine the weekly contribution from each product when microprocessors are allocated to the product with the highest: | ||||||
a. | Unit selling price | |||||
b. | Unit contribution margin | |||||
c. | Contribution per microprocessor | |||||
2. Determine the net disadvantage to the manufacturer if management requires the weekly production of 12 Speedsters. | ||||||
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
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