Question: Excel File Edit View Insert Format Tools Data Window Help .. t ave D Chapter 18 (4) Home Insert Page Layout Formulas Data Review View
Excel File Edit View Insert Format Tools Data Window Help .. t ave D Chapter 18 (4) Home Insert Page Layout Formulas Data Review View . Cut Times New - 16 . A- A+ To Wrap Text General - Copy Paste Format BIU .A.A. 3 - Merge & Center. $ . % ) Conditional Format Formatting as Table St- 114 x fx M N O P Q R 17. Contribution Margin with Resource Constraints. Dolomite Company produces two different products that have the following price and cost characteristics. Classic Modern Selling price per unit $200 $100 Variable cost per unit $120 $ 50 Management believes that pushing sales of the Classic product would maximize company profits because of the high contribution margin per unit for this product. However, only 23.000 machine hours are available each year, and the Classic product requires 2 machine hours per unit while the Modern model requires 1 machine hour per unit. The company sells everything it produces. Required: a. Calculate the contribution margin per unit of constrained resource for each product. b. Which product would Dolomite prefer to sell to maximize overall company profit? Explain. c. Assume in requirements a and b that Dolomite can sell as many of either product as it can produce. For parte, now assume that Dolomite can sell a maximum of 19,000 Modems and 10,000 Classics. Given this market constraint, how many of each product should Dolomito sell and what would be the combined contribution margin. Constraints After tax TP B ER, TP & MOS Multi-Product BEP & TP MOS & Operating Leverage Favorite question cost structure Ready My Media Panopto Videos
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