You produce two products, Queen and King. Queen King Sales price per unit $800 $1,200 Variable cost per unit 300 450 Stuffing hours required: 1 hour 2 hours You employ three workers who are trained to stuff these products. There are only 7,000 assembly hours available in the year. You believe that you can sell a maximum of 3,000 queen and 4,000 king. A. Which product should you emphasize? Support your answer with calculations. B. How many queen can you (should you) produce? Support your answer with calculations C. How many king can you (should you) produce? Support your answer with calculations

You produce two products, Queen and King. Queen King Sales price per unit $800 $1,200 Variable cost per unit 300 450 Stuffing hours required: 1 hour 2 hours You employ three workers who are trained to stuff these products. There are only 7,000 assembly hours available in the year. You believe that you can sell a maximum of 3,000 queen and 4,000 king. A. Which product should you emphasize? Support your answer with calculations. B. How many queen can you (should you) produce? Support your answer with calculations C. How many king can you (should you) produce? Support your answer with calculations

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Description: 8:07DoneA bartleby.comAA C= bartlebyQ&ABusiness / Accounting / Q&A Library / You produce tw...You produce two products, Queen an...You produce two products, Queen and King.Queen KingSales price per unit $800 $1,200Variable cost per unit 300 450Stuff

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 12EA: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the...

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Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).
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You produce two products, Queen and King. Queen KingSales price per unit $800 $1,200Variable cost per unit 300 450 Stuffing hours required: 1 hour 2 hours You employ three workers who are trained to stuff these products. There are only 7,000 assembly hours available in the year. You believe that you can sell a maximum of 3,000 queen and 4,000 king. A. Which product should you emphasize? Support your answer with calculations.B. How many queen can you (should you) produce? Support your answer with calculationsC. How many king can you (should you) produce? Support your answer with calculations
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