Hello Company makes three different products. Due to the constraints of their manufacturing equipment and warehouse...

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Hello Company makes three different products. Due to the constraints of their manufacturing equipment and warehouse facility, the company is only able to produce, store, and sell a total of 50,000 units each month. The production of Products A and B varies each month; however, Product Cisa special order for one customer who purchases the same number of units every month. Pete Davila, the CEO, has provided the following data from last Product C Max Capacity Income Statement Units Product A Product B 43,000 10.00 $ 5,000 2,000 50,000 Price per unit Variable expense per unit 8.00 $ 50.00 15.00 10,000 3.00 $ 2.00 $ Total Fixed Costs 20,000 $ 40,000 $ 430,000 $ (129,000) $4 40,000 $ (10,000) 30,000 $ Product Sales Variable Costs Contribution Margin 100,000 $ 570,000 (30,000) 70,000 $ 401,000 (169,000) 301,000 $ (20,000) (40,000) (10,000) Fixed Costs (70,000) (10,000) 60,000 $ 331,000 Operating income (loss) 281,000 Required Using the Data Table What-If Analysis tool in Excel, determine the Units and Operating Income (Loss) for each product base on the following scenarios. (Hint: Don't forget that the warehouse can only hold up to 50.000 units.) Scenario 1: Pete wants to find the mix of units that will result in the highest overall Operating Income, perform this analysis using a two-variable data table. Product A can vary between 40,000 units and a maximum of 45,000 units. Product Bcan vary between 3,000 units and a maximum of 8,000 units. Both Products A and B are manufactured in 1,000-unit increments. The production level of Product Cis the same each month at 2,000 units. Operating Income (Loss) SCENARIO 1 Product A Product B Product C Units ? ? Scenario 2: Pete wants each product line in the mix to be profitable. Use a One Variable Data Table to determine the number of units for each product that should be produced (to the nearest thousand) to make each product line profitable. Operating Income (Loss) SCENARIO 2 Product A Product B Product C Units ? ?. Based on your calculations above, which scenario creates the highest overall Operating Income for the company? Hello Company makes three different products. Due to the constraints of their manufacturing equipment and warehouse facility, the company is only able to produce, store, and sell a total of 50,000 units each month. The production of Products A and B varies each month; however, Product Cisa special order for one customer who purchases the same number of units every month. Pete Davila, the CEO, has provided the following data from last Product C Max Capacity Income Statement Units Product A Product B 43,000 10.00 $ 5,000 2,000 50,000 Price per unit Variable expense per unit 8.00 $ 50.00 15.00 10,000 3.00 $ 2.00 $ Total Fixed Costs 20,000 $ 40,000 $ 430,000 $ (129,000) $4 40,000 $ (10,000) 30,000 $ Product Sales Variable Costs Contribution Margin 100,000 $ 570,000 (30,000) 70,000 $ 401,000 (169,000) 301,000 $ (20,000) (40,000) (10,000) Fixed Costs (70,000) (10,000) 60,000 $ 331,000 Operating income (loss) 281,000 Required Using the Data Table What-If Analysis tool in Excel, determine the Units and Operating Income (Loss) for each product base on the following scenarios. (Hint: Don't forget that the warehouse can only hold up to 50.000 units.) Scenario 1: Pete wants to find the mix of units that will result in the highest overall Operating Income, perform this analysis using a two-variable data table. Product A can vary between 40,000 units and a maximum of 45,000 units. Product Bcan vary between 3,000 units and a maximum of 8,000 units. Both Products A and B are manufactured in 1,000-unit increments. The production level of Product Cis the same each month at 2,000 units. Operating Income (Loss) SCENARIO 1 Product A Product B Product C Units ? ? Scenario 2: Pete wants each product line in the mix to be profitable. Use a One Variable Data Table to determine the number of units for each product that should be produced (to the nearest thousand) to make each product line profitable. Operating Income (Loss) SCENARIO 2 Product A Product B Product C Units ? ?. Based on your calculations above, which scenario creates the highest overall Operating Income for the company?

Answer rating: 100% (QA)

Solution All calculation for Hello Company a General constraint Warehouse capacity is 50000 units b ... View the full answer