Molding Materials 30 pounds per door 45 pounds per door 540,000 pounds $3 per pound Selling Price $235 per door $305 per door Finishing Time 3 hours per door 4 hours per door Masoline Aldernite Materials/Labor Available 102,000 hours Cost of materials and labor $15 per hour The following requirements refer only to the preceding data. There is no connection between the requirements. 1. If there were enough demand for either door, which door would DF produce? How many of these doors would it make and sell? Required 2. If DF sells three Masoline for each Aldernite, how many doors of each type would it produce and sell? What would be the total contribution margin? 3. If DF sells three Masoline for each Aldernite, how much would production and contribution margin increase if the molding department could buy 9,000 more pounds of materials for $3 per pound? 4. If DF sells three Masoline for each Aldernite, how much would production and contribution margin increase if the assembly department could get 780 more labor hours at $15 per hour?

Molding Materials 30 pounds per door 45 pounds per door 540,000 pounds $3 per pound Selling Price $235 per door $305 per door Finishing Time 3 hours per door 4 hours per door Masoline Aldernite Materials/Labor Available 102,000 hours Cost of materials and labor $15 per hour The following requirements refer only to the preceding data. There is no connection between the requirements. 1. If there were enough demand for either door, which door would DF produce? How many of these doors would it make and sell? Required 2. If DF sells three Masoline for each Aldernite, how many doors of each type would it produce and sell? What would be the total contribution margin? 3. If DF sells three Masoline for each Aldernite, how much would production and contribution margin increase if the molding department could buy 9,000 more pounds of materials for $3 per pound? 4. If DF sells three Masoline for each Aldernite, how much would production and contribution margin increase if the assembly department could get 780 more labor hours at $15 per hour?

Name: Theory of constraints, contribution margin, sensitivity analysis. Damo
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Description: Theory of constraints, contribution margin, sensitivity analysis. Damon Furniture (DF) produces fiberglass doors in two processes: molding and finishing. DF is currently producing two models: Masoline and Aldernite. Production in the molding departme

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 14E

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