QUESTION 6 Chenwang Manufacturing has 18,000 labor hours and 120,000 grams of material. The cost of labor per hour is $10, and material costs 60 cents per gram. The company manufactures three products: A, B and C. Quantity of material used per unit of each product, labor time used, demand, and selling price are given in the table below. Production has to equal or exceed demand. A в Material used per unit (grams) 15 12 Labor hours per unit 3 1.5 2 Projected demand 2000 3500 3000 Price per unit $60 $40 $45 Refer to Chenwang Manufacturing. At the optimum solution, which of the three products gives you the highest revenues? A. Product A B. Product B OC. Product C O D. Two (or all three) products yield the same revenue
QUESTION 6 Chenwang Manufacturing has 18,000 labor hours and 120,000 grams of material. The cost of labor per hour is $10, and material costs 60 cents per gram. The company manufactures three products: A, B and C. Quantity of material used per unit of each product, labor time used, demand, and selling price are given in the table below. Production has to equal or exceed demand. A в Material used per unit (grams) 15 12 Labor hours per unit 3 1.5 2 Projected demand 2000 3500 3000 Price per unit $60 $40 $45 Refer to Chenwang Manufacturing. At the optimum solution, which of the three products gives you the highest revenues? A. Product A B. Product B OC. Product C O D. Two (or all three) products yield the same revenue
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 38E: (Appendix 11A) Manufacturing Cycle Efficiency Ventris Company found that one of its manufacturing...
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