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Pinnacle Manufacturing Company Case Answers

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The 7,500 WRM's capacity needs Remaining Capacity after BB The 20,000 BB's capacity needs Excess capacity Used capacity by the company's regular product lines Practical capacity of resources 938 1000 500 2,500 10,000 12,500 Handling Material 1875 1000 1000 2000 10,000 12,000 Setting up Equipment 1 3 1 4 8 12 Designing Processes and Products 1 3 1 4 8 12 Designing Packaging 26,250 30,000 30,000 60,000 240,000 300,000 Machining the Product 1,500 2500 * 4000 1,500 18,500 20,000 Direct Labor (If the company produce the BB first, the company will buy 4000 labor hours, and it will use 2500 for BB and the remaining hours to produce WRM = 1500. Remaining Capacity after BB The 5000 WRM's capacity needs (half the 10,000 WRM's capacity needs The 10,000 WRM's capacity needs Handling Material 1000 625…show more content…
This choice is because the last alternative is the best production combination that generate the higher profit for the company of all the 6 alternatives. This can be showing in the ranking below. Profit Impact Alternatives $300,000 a $198,000 b $696,000 c $869,000 d $796,000 e $876,000 f d) What additional information would you like before making a decision about adding these new products? I would like to know two type of info about the new product that help making the decisions about the new product. 1- Is there any limitations on the company resources to produce new products? If yes, what are
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