Question: Page 1 1 3 Question 5 (4 points) Excel company manufactures custom plastic mouldings. Excetilizes a fully automated injection moulding machine that is only operational
Page 1 1 3 Question 5 (4 points) Excel company manufactures custom plastic mouldings. Excetilizes a fully automated injection moulding machine" that is only operational 600 hours per month. This machine automatically mixes the raw materials, hents, moulds cures & packages the final product ready for shipping 4 5 6 1 7 8 Excelhas 2 options for manufacturing next year. If it manufactures Product R", it forecasts revenues of $40.00 per unit, variable costs of 18.00 per unit, and production of 200 units per injection moulding machine hour. fit manufactures Products forecasts revenues of $74.00 per unit, variable costs of $57.00 per unit, and production of 210 units per injection molding machine bour 9 10 11 12 Note that the difference in variable costs and production volumes between "R" & "Sare due to the type of plastic used, beating times & curint times 15 14 15 All other costs including all fixed costs See Product Residentical Assuming it can sellas much as it makes the product, what do you recommend to Excel in order to maximize operating incomes 16 17 only produce product "R" as it will result in higher operating incomes by $60.000 per month 19 20 21 only produce product "S" as it will result in higher operating incomes by $6,000 per month 22 23 24 26 27 only produce product "S" as it will result in higher operating incomes by $60.000 per month only produce product "R" as it will result in higher operating incomes by $6.000 per month
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
