The machine that is used to make two of Platensil Co. products, Ork and Poon can only
Question:
The machine that is used to make two of Platensil Co. products, Ork and Poon can only work on one product at a time. The two products are worked on in two departments by differing grades of labour. The labour requirements for the two products are as
follows:
| Minutes per unit of product | |
| Ork | Poon |
Department 1 | 12 | 16 |
Department 2 | 20 | 15 |
There is currently a shortage of labour and the maximum times available each day in Departments 1 and 2 are 480 minutes and 840 minutes, respectively. The current selling prices and costs for the two products are shown below:
B
| Ork | Poon |
| $ per unit | $ per unit |
Selling price | 50·00 | 65·00 |
Direct materials | 10·00 | 15·00 |
Direct labour | 10·40 | 6·20 |
Variable overheads | 6·40 | 9·20 |
Fixed overheads | 12·80 | 18·40 |
Profit per unit | 10·40 | 16·20 |
As part of the budget-setting process, Platensil Co needs to know the optimum output levels Assuming ALL output is sold.
- Calculate the maximum number of each product that could be produced each day and identify the bottleneck resource.
- Using traditional contribution analysis, calculate the 'profit-maximising' output each day, and the contribution at this level of output.
- Using a throughput approach, calculate the 'throughput-maximising' output each day, and the 'throughput contribution' at this level of output.
The company is currently developing a system of environmental costing.
- Describe the key features of an environmental management system.
- Explain the difference between internalised environmental costs and externalised environmental impacts and state two examples of each.
Mathematical Statistics with Applications in R
ISBN: 978-0124171138
2nd edition
Authors: Chris P. Tsokos, K.M. Ramachandran