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SECTION C Problem 8 A company produces two products Data concerning the selling prices and unit costs of the two products appear below: Products IAA BB Selling price per unit ($/unit) s 75 $ 55 S 50 S 40 Direct Material costs per unit (S/unit) Other Variable costs per unit (S/unit) Total variable Costs per unit (S/unit) 12 10 62 50 Pounds of Direct Materials required (b/unit) $ 2 Assume both products use the same Direct Material. The Direct Material is the constraining resource. The company was only able to get 2.600 lbs of the direct material that goes into each product. The Direct Material cost $2.00/1b. The company must choose which products it will produce and in what order SA. Complete the Table below and answer the questions that follow AA BB What is the cost of DM per unit 50 60 What is the amount of the Direct Material (in lbs) 25 30 per unit of product? What is the unit CM? 13 10 What is the CM per constrained resource 25 30 SB. Given constrained resource, if there was unlimited demand for both products how much of each product would you produce? Product AA: 2,600/25=104 Product BB: 0 SC. Assume there is no constrained resource but limited demand on each product of 500 units. How much of each product would the company produce? SECTION C Problem 8 A company produces two products Data concerning the selling prices and unit costs of the two products appear below: Products IAA BB Selling price per unit ($/unit) s 75 $ 55 S 50 S 40 Direct Material costs per unit (S/unit) Other Variable costs per unit (S/unit) Total variable Costs per unit (S/unit) 12 10 62 50 Pounds of Direct Materials required (b/unit) $ 2 Assume both products use the same Direct Material. The Direct Material is the constraining resource. The company was only able to get 2.600 lbs of the direct material that goes into each product. The Direct Material cost $2.00/1b. The company must choose which products it will produce and in what order SA. Complete the Table below and answer the questions that follow AA BB What is the cost of DM per unit 50 60 What is the amount of the Direct Material (in lbs) 25 30 per unit of product? What is the unit CM? 13 10 What is the CM per constrained resource 25 30 SB. Given constrained resource, if there was unlimited demand for both products how much of each product would you produce? Product AA: 2,600/25=104 Product BB: 0 SC. Assume there is no constrained resource but limited demand on each product of 500 units. How much of each product would the company produce