How should Sarah allocate the 10,500 available machine hours between the two products so that Marwick maximizes its profits? Machine Hours Dumbbell Rack enter a number of machine hours Weight Bench Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10,500 machine hours, and no other products that the company makes use these machines.Sarah Jacob, the company’s operations manager, is preparing the production schedule for the coming month and can’t seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget.Michael Stoner, the company’s controller, has gathered the following information about the two products: DumbbellRack WeightBench Selling price per unit $50 $60 Direct materials 20 12 Direct labor 6 12 Variable overhead 3 6 Fixed overhead 5 10 Profit per unit $16 $20 Unit sales demand 5,000 8,000 Machine hours per unit 0.75 1.5
How should Sarah allocate the 10,500 available machine hours between the two products so that Marwick maximizes its profits? Machine Hours Dumbbell Rack enter a number of machine hours Weight Bench Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10,500 machine hours, and no other products that the company makes use these machines.Sarah Jacob, the company’s operations manager, is preparing the production schedule for the coming month and can’t seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget.Michael Stoner, the company’s controller, has gathered the following information about the two products: DumbbellRack WeightBench Selling price per unit $50 $60 Direct materials 20 12 Direct labor 6 12 Variable overhead 3 6 Fixed overhead 5 10 Profit per unit $16 $20 Unit sales demand 5,000 8,000 Machine hours per unit 0.75 1.5
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Your Question:
How should Sarah allocate the 10,500 available machine hours between the two products so that Marwick maximizes its profits?
Machine Hours
|
||
---|---|---|
Dumbbell Rack
|
enter a number of machine hours | |
Weight Bench
|
Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10,500 machine hours, and no other products that the company makes use these machines.
Sarah Jacob, the company’s operations manager, is preparing the production schedule for the coming month and can’t seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget.
Michael Stoner, the company’s controller, has gathered the following information about the two products:
Sarah Jacob, the company’s operations manager, is preparing the production schedule for the coming month and can’t seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget.
Michael Stoner, the company’s controller, has gathered the following information about the two products:
Dumbbell
Rack |
Weight
Bench |
|||||||
---|---|---|---|---|---|---|---|---|
Selling price per unit
|
$50 | $60 | ||||||
Direct materials
|
20 | 12 | ||||||
Direct labor
|
6 | 12 | ||||||
Variable overhead
|
3 | 6 | ||||||
Fixed overhead
|
5 | 10 | ||||||
Profit per unit
|
$16 | $20 | ||||||
Unit sales demand
|
5,000 | 8,000 | ||||||
Machine hours per unit
|
0.75 | 1.5 |
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