Leach Finishing makes various metal fittings for the construction Industry. Three of the fittings, models X-12,...

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Leach Finishing makes various metal fittings for the construction Industry. Three of the fittings, models X-12, X-24, and X-30, require grinding on a patented machine of which Leach has only one. The cost of production Information for the three products follow: Price per fitting Variable cost per fitting Units per hour of grinding X-12 X-24 X-30 $ 28 $ 44 $ 63 $ 13 $ 20 $ 37 18.0 12.5 10.0 The testing machine used for both models has a capacity of 2,810 hours annually. Fixed manufacturing costs are $482,000 annually. Required: a. Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? b. Suppose that Leach Finishing can sell at most 14,850 units of any one fitting. How many units of each fitting should Leach Finishing produce annually? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? X-12 X-24 units units X-30 units < Required A Required B > Leach Finishing makes various metal fittings for the construction Industry. Three of the fittings, models X-12, X-24, and X-30, require grinding on a patented machine of which Leach has only one. The cost of production Information for the three products follow: Price per fitting Variable cost per fitting Units per hour of grinding X-12 X-24 X-30 $ 28 $ 44 $ 63 $ 13 $ 20 $ 37 18.0 12.5 10.0 The testing machine used for both models has a capacity of 2,810 hours annually. Fixed manufacturing costs are $482,000 annually. Required: a. Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? b. Suppose that Leach Finishing can sell at most 14,850 units of any one fitting. How many units of each fitting should Leach Finishing produce annually? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? X-12 X-24 units units X-30 units < Required A Required B >

Answer rating: 100% (QA)

To determine the optimal production quantity for each fitting model we need to calculate the contribution margin per hour of grinding and then divide the total available grinding hours by the contribu... View the full answer