Question: Can you help me do this tanks a. The constraint at Shanghai Company is an expensive milling machine. The three products listed below use this
Can you help me do this tanks
a. The constraint at Shanghai Company is an expensive milling machine. The three products listed below use this constrained resource. Red Green Blue Selling price per unit $85 $195 $70 Variable cost per unit $45 $155 $30 Time on the constraint (minutes) 1.30 2.70 1.10 Required (show your calculations):
i. Rank the products in order of their current profitability from the most profitable to the least profitable. (8 marks)
ii. Assume that sufficient constraint time is available to satisfy the demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource. Explain your answer.
Selling price per unit Variable cost per unit Time on the constraint (minutes) Red $85 $45 1.30 Green $195 $155 2.70 Blue $70 $30 1.10Step by Step Solution
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