Can you help me do this quickly, thanks a. The constraint at Shanghai Company is an expensive milling machine. The three products listed below use this constrained resource. Required (show your calculations): i. Rank the products in order of their current profitability from the most profitable to the least profitable. ii. Assume that sufficient constraint time is available to satisfy the demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource. Explain your answer.
Can you help me do this quickly, thanks a. The constraint at Shanghai Company is an expensive milling machine. The three products listed below use this constrained resource. Required (show your calculations): i. Rank the products in order of their current profitability from the most profitable to the least profitable. ii. Assume that sufficient constraint time is available to satisfy the demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource. Explain your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you help me do this quickly, thanks
a. The constraint at Shanghai Company is an expensive milling machine. The three products
listed below use this constrained resource.
Required (show your calculations):
i. Rank the products in order of their current profitability from the most profitable to the least
profitable.
ii. Assume that sufficient constraint time is available to satisfy the demand for all but the least
profitable product. Up to how much should the company be willing to pay to acquire more of the
constrained resource. Explain your answer.
Transcribed Image Text:Selling price per unit
Variable cost per unit
Time on the constraint (minutes)
Red
$85
$45
1.30
Green
$195
$155
2.70
Blue
$70
$30
1.10
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