Question: Calculating the current year's demand from three customers based on previous data to maximize the company's profits What is the marginal contribution per unit of

- Calculating the current year's demand from three customers based on previous data to maximize the company's profits
- What is the marginal contribution per unit of each product?
- How much can the material supply increase for this value to remain valid?
Kosanka is a manufacturing company, and its main three customers are Hooper, Minden and Neptune. The demands of the three companies have fluctuated in the following ranges in recent years: Hooper Minden Neptune Inventory Minimum Maximum Minimum Maximum Minimum Maximum 300 A B c 500 100 200 500 1200 1500 1000 1300 15.00 500 1000 200 800 900 600 1200 The three largest raw materials consumed by Kosanka are Velcro, Metal and Nylon. The following table shows the unit production cost and the materials required for each inventory. The raw material cost is included in the production cost: Inventory Velcro Metal Production cost per unit component $3.80 $2.70 $5.50 Nylon 0.1 0.3 B 0.5 2 1 1.5 1.5 This year Velcro 50,000 units, Meta 20,000 units and Nylon 300,000 units were purchased. Assuming there is no surplus of raw materials last year The following table shows the unit shipping cost and unit sales revenue for the three customers: Inventory Hooper Unit Sales Cost per unit revenue $0.10 $4 50.15 Minden Cost per Unit sales uuit revenue $0.20 $6.00 $0.17 $8.00 Neptune Cost per unit Unit sales revenue $0.13 $6 $0.20 59 A B $5.00 C 50.45 510
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
