Betty products inc. manufactures three products on two, Ask an Expert

Accounting

Betty Products Inc. manufactures three products on two machines. In a typical week 40 hours are available on each machine. The profit contribution and production time in hours per unit follows:

Category Product 1 Product 2 Product 3

Profit/unit $30 $50 $20

Machine 1 time/unit 0.5 2.0 0.75

Machine 2 time/unit 1.0 1.0 0.5

Two operators are required for machine 1; thus, 2 hours of labor must be scheduled for each hours of machine 1 time. Only one operator is required for machine 2. a maximum of 100 labors is available for assignment to the machines during the coming week. Other production requirement are that product 1 cannot account for more than 50% of the units produced and that product 3 must account for at least 20% of the units produced

a. How many units of each product be produced to maximize the total profit contribution? What is the projected weekly profit associated with the solution?

b. How many hours of production time will be scheduled on each machine?

c. What is the value of an additional hour of labor?

d. Assume that labor capacity can be increased to 120 hours. Would you be interested in using the additional 20 hours available for the resource? Develop the optimal product mix assuming the extra hours are made available.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9395985

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - garfield gunman purchased as a held-to-maturity

Question - Garfield Gunman; purchased, as a held-to-maturity investment, $80,000 of the 9%, 5-year bond on Chester Corporation for $70,086, which provides an 11% return. Prepare Garfield's journal entries for (a) the pur ...

Question if the per worker production function is given by

Question: If the per worker production function is given by y=k^1/2, the population growth rate is n= .04, and the depreciation is .01. a. The golden rule level of capital and output per worker is: b. What is the saving ...

Question - vestorville company reported the following

Question - Vestorville Company reported the following results from last year's operations Sales 1,000,000 Variable expenses 300,000 Contribution margin 700,000 Fixed expenses 500,000 Net operating income 200,000 Average ...

Question - retained earnings at 111x was 150000 and at

Question - Retained earnings at 1/1/1X was $150,000 and at 12/31/1X it was $200,000. During 2010, cash dividends of $50,000 were paid and a stock dividend of $30,000 was issued. Both dividends were properly charged to re ...

Question - crane company had 590000 shares of common stock

Question - Crane Company had 590000 shares of common stock outstanding on January 1, issued 890000 shares on July 1, and had income applicable to common stock of $2930000 for the year ending December 31, 2018. Earnings p ...

Question define accounting and describe its role in

Question: Define accounting and describe its role in business.? Accounting, the language of business allows for the communication and distribution of information to owners, managers, and investors to evaluate a company's ...

Question - por corporation is an automobile manufacturer

Question - POR Corporation is an automobile manufacturer. POR has an unused piece of manufacturing equipment in one of its factories (i.e., a capital asset). POR has been approached by CIV Ltd., who would like to purchas ...

Question - victorias 2016 tax return was due on april 15

Question - Victoria's 2016 tax return was due on April 15, 2017, but she did not file it until June 12, 2017. Victoria did not file an extension. The tax due on the tax return when filed was $9,400. In 2016, Victoria pai ...

Question - shelby has net investment income of 16790 and

Question - Shelby has net investment income of $16,790 and wage income of $72,000. She paid investment interest expense of $17,300. What is Shelby's deduction for investment interest expense?

Question - on january 1 2018 concord corporation declared a

Question - On January 1, 2018, Concord Corporation, declared a 10% stock dividend on its common stock when the fair value of the common stock was $32 per share. Stockholders' equity before the stock dividend was declared ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert