Richelieu Specialty Paints has received a special order for two types of paints: Marine Coat, used...
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Richelieu Specialty Paints has received a special order for two types of paints: Marine Coat, used on boats, and Blocker, used on items that receive a great deal of strong, hot sun. Both paints use a UV- blocking additive and a mold inhibitor. Richelieu currently has 245 liters of the mold inhibitor on hand and 310 liters of the UV-blocking additive. Mold Inhibitor Used (liters per can) UV Blocking Additive Used (liters per can) CM per can Blocker 0.45 1.1 $3.00 Marine Coat 0.56 0.65 $3.75 The special-order customer has requested at least 275 cans of Marine Coat but will take up to 400 cans if available. The customer will take as much Blocker paint as Richelieu can provide. Amanda would like to generate the highest total contribution margin possible for this order and needs to know how much of each product should be made. Richelieu Specialty Paints has received a special order for two types of paints: Marine Coat, used on boats, and Blocker, used on items that receive a great deal of strong, hot sun. Both paints use a UV- blocking additive and a mold inhibitor. Richelieu currently has 245 liters of the mold inhibitor on hand and 310 liters of the UV-blocking additive. Mold Inhibitor Used (liters per can) UV Blocking Additive Used (liters per can) CM per can Blocker 0.45 1.1 $3.00 Marine Coat 0.56 0.65 $3.75 The special-order customer has requested at least 275 cans of Marine Coat but will take up to 400 cans if available. The customer will take as much Blocker paint as Richelieu can provide. Amanda would like to generate the highest total contribution margin possible for this order and needs to know how much of each product should be made.
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determine the feasibility of fulfilling the special order for Marine Coat and Blocker pain... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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