The profit in product mix by using traditional contribution margin method needs to be determined. Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

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Answer 1

Question

Chapter 5, Problem 8P

(A)

Summary Introduction

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

B

Summary Introduction

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.

Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

(C)

Summary Introduction

Interpretation: The profit gain in value and in percentage needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

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Yost-Perry Industries’ (YPI) senior management team wants to improve the profitability of the firm by accepting the right set of orders. Currently, decisions are made using the traditional method, which is to accept as much of the highest contribution margin product as possible (up to the limit of its demand), followed by the next highest contribution margin product, and so on until all available capacity is utilized. Because the firm cannot satisfy all the demand, the product mix must be chosen carefully. Jay Perry, the newly promoted production supervisor, is knowledgeable about the TOC and the bottleneck-based method for scheduling. He believes that profitability can indeed be improved if bottleneck resourcesare exploited to determine the product mix. What is the change in profits if, instead of the traditional method that YPI has used thus far, the bottleneck method advocated by Jay is used for selecting the product mix?

Explain and expand these importance of capacity planning. 1. Capacity decisions have a real impact on the ability of the organization to meet future demands for products and services. 2. Capacity decisions affect operating costs. 3. Capacity is usually a major determinant of initial cost. Typically, the greater the capacity of a productive unit, the greater its cost.

2-The process of making hotdogs involves six activities: “grind”, “mix”, “stuff”, “cook”, “peel”, and “inspect”. If the capacity of activity “cook” determines the process capacity, which of the following statements are true? a- Activity “cook” is a bottleneck activity. b- The activity time of all the other five activities is shorter than activity "cook". c- Cycle time of the process of making hotdogs is equal=1/capacity of activity “cook”. d- Increasing the capacity of activity “grind” can increase the capacity of the process of making hotdogs. All statements are correct Only statement 'b' is correct Only statements 'a' and 'b' are correct Only statements 'a', 'b' and 'c' are correct Only statement 'a' is correct Only statement 'd' is correct

Answer 2

Question

Chapter 5, Problem 8P

(A)

Summary Introduction

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

B

Summary Introduction

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.

Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

(C)

Summary Introduction

Interpretation: The profit gain in value and in percentage needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 8P

(A)

Summary Introduction

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

B

Summary Introduction

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.

Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

(C)

Summary Introduction

Interpretation: The profit gain in value and in percentage needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 8P

(A)

Summary Introduction

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

B

Summary Introduction

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.

Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

(C)

Summary Introduction

Interpretation: The profit gain in value and in percentage needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 8P

(A)

Summary Introduction

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

B

Summary Introduction

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.

Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

(C)

Summary Introduction

Interpretation: The profit gain in value and in percentage needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Answer 6

Chapter 5, Problem 8P

(A)

Summary Introduction

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Answer 7

Chapter 5, Problem 8P

(A)

Summary Introduction

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Answer 8

B

Summary Introduction

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.

Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

Answer 9

B

Summary Introduction

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.

Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

Answer 10

(C)

Summary Introduction

Interpretation: The profit gain in value and in percentage needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Answer 11

(C)

Summary Introduction

Interpretation: The profit gain in value and in percentage needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 14

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Answer 15

Ch. 5 - Take a process that you encounter on a daily...Ch. 5 - Prob. 2DQ Ch. 5 - How could the efficiency of the redesigned process...Ch. 5 - Billâ€™s Barbershop has two barbers available to...Ch. 5 - Melissaâ€™s Photo Studio offers both individual...Ch. 5 - Figure 5.11 details the process flow for two types...Ch. 5 - Prob. 4P Ch. 5 - Super Fun Industries manufactures four top-selling...Ch. 5 - Prob. 6P Ch. 5 - Yost-Perry Industries (YPI) manufactures a mix of...

The profit in product mix by using traditional contribution margin method needs to be determined. Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Solution Summary: The author explains how the profit (using bottleneck method) for select a product mix needs to be determined.

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.

Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

Interpretation: The profit gain in value and in percentage needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Want to see the full answer?

Chapter 5 Solutions

The profit in product mix by using traditional contribution margin method needs to be determined. Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Solution Summary: The author explains how the profit (using bottleneck method) for select a product mix needs to be determined.

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined. Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined. Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

Interpretation: The profit gain in value and in percentage needs to be determined. Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Want to see the full answer?

Chapter 5 Solutions

Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.

Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.

Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand

Interpretation: The profit gain in value and in percentage needs to be determined.

Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.