FDX Company has a facility that focuses on producing two products. Product 1 sells for $160...

 

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FDX Company has a facility that focuses on producing two products. Product 1 sells for $160 per unit and Product 2 sells for $280 per unit. FDX estimates weekly demand is 200 units for Product 1 and 100 units for Product 2. Material DX322 is the only raw material in both products. Product 1 uses $60 of DX322 per unit and Product 2 uses $120 of DX322per unit. Product 1 uses $20 per unit of direct labor and Product 2 uses $36 per unit of direct labor. The products are largely built by hand using four employees. The employee names and their average production times per product are provided below. Product 1 4 5 4.5 Fernando time per unit (minutes) 6 12.5 FDX does not allow any overtime, so each employee has the capacity to work for 40 hours (2,400 minutes) per week. Required: Ahmad time per unit (minutes) Ronaldo time per unit (minutes) Hakimi time per unit (minutes) Product 2 12 11 13 a) Calculate throughput margin for Product 1 and Product 2? (2 marks) b) Identify which of the four workers are the bottleneck in this work process? Why? (1 mark) c) Calculate bottleneck minute for Product 1 and Product 2? (3 marks) Determine the weekly production mix of Product 1 and Product 2 that maximizes operating income? (3 d) marks). FDX Company has a facility that focuses on producing two products. Product 1 sells for $160 per unit and Product 2 sells for $280 per unit. FDX estimates weekly demand is 200 units for Product 1 and 100 units for Product 2. Material DX322 is the only raw material in both products. Product 1 uses $60 of DX322 per unit and Product 2 uses $120 of DX322per unit. Product 1 uses $20 per unit of direct labor and Product 2 uses $36 per unit of direct labor. The products are largely built by hand using four employees. The employee names and their average production times per product are provided below. Product 1 4 5 4.5 Fernando time per unit (minutes) 6 12.5 FDX does not allow any overtime, so each employee has the capacity to work for 40 hours (2,400 minutes) per week. Required: Ahmad time per unit (minutes) Ronaldo time per unit (minutes) Hakimi time per unit (minutes) Product 2 12 11 13 a) Calculate throughput margin for Product 1 and Product 2? (2 marks) b) Identify which of the four workers are the bottleneck in this work process? Why? (1 mark) c) Calculate bottleneck minute for Product 1 and Product 2? (3 marks) Determine the weekly production mix of Product 1 and Product 2 that maximizes operating income? (3 d) marks).

Answer rating: 100% (QA)

a Throughput margin per unit Product 1 Revenue 160 Material cost 60 Labo... View the full answer