Question: please provide solution ASAP Your accounting manager would like you to assist with the preparation of the sales variance analysis for the 2 nd quarter

Your accounting manager would like you to assist with the preparation of the sales variance analysis for the 2 nd quarter of 2023. Budgeted and actual sales information for the company are as follows: The following budgeted price and unit cost information is available for 2023: Note 1: Manufacturing overhead costs is allocated @ $6.00/ machine hour to all three products. 40% of the manufacturing overhead costs is considered variable. Remaining are fixed costs. Note 2: 10% of the selling and admin costs are variable. The remaining are fixed. PNBC monthly machine hour capacity is limited to 1,800 hours. Monthly demand information is as follows: Question 1: Prepare a product mix analysis. Determine the machine hours required for each of the product. Determine the ranking of the products in order of its contribution margin per constrained resource. (11 marks) Question 2: Using the linear programming model under Solver, determine the optimal number of units of each product PNBC should make and sell each month to maximize the profit. (Include the screen shot of your LP models and results). (10 marks) Interpret the Answer Report and Sensitivity Report. What are the binding constraints? Explain why the constraints are binding or not binding. If the company can acquire more machine hours, what price would the company be willing to pay
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
