Question: Ocean Surf would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is
Ocean Surf would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by giving resource priority to the highest contribution margin surfboards. Ocean Surf always has a contingent of 10 workers on hand; each worker is paid $25 per hour. Overhead costs are $35,000 per week. The plant operates 18 hours per day and 6 days per week. Labor is considered a fixed expense because workers are paid for their time regardless of their utilization.
| Product | A | B | C |
| Price | $450 | $400 | $500 |
| Material Cost | $50 | $40 | $110 |
| Weekly Demand | 100 | 75 | 40 |
| Processing Time Station 1 | 60 | 0 | 30 |
| Processing Time Station 2 | 10 | 60 | 0 |
| Processing Time Station 3 | 20 | 30 | 40 |
The profit from the bottleneck method is $____________ (enter response as integer).
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