Business, 26.03.2021 06:10 xthom001ow7go3

Dustin Co. makes three products, A, B and C. They have a constrained resource - machine hours. There are only 17,398 machine hours available a month. The three products have the following data: A B C Selling Price per unit 6.00 16.00 11.00 Variable Cost per unit 2.00 4.00 6.00 Machine hours required 2 4 5 Demand for product in units 1,009 3,847 1,037 How much of product B should be produced?

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Answer from: ReaFam

Total products produced by B = 3847

Explanation:

Given - Dustin Co. makes three products, A, B and C. They have a constrained resource - machine hours. There are only 17,398 machine hours available a month.

The three products have the following data:

A B C

Selling Price per unit 6.00 16.00 11.00

Variable Cost per unit 2.00 4.00 6.00

Machine hours required 2 4 5

Demand for product in units 1,009 3,847 1,037

To find - How much of product B should be produced?

Solution -

Products A B C

Selling Price per unit 6 16 11

Variable cost per unit 2 4 6

Contribution (Selling - Variable) 4 12 5

Machine hours required 2 4 5

Contribution per hr 2 3 1

(Conribution / Machine hour)

Rank II I III

Demand 1009 3847 1037

Now,

Hours allocated to B -

No. of hours available = 3847 × 4 = 15,388

Available hours = 17,398

Now,

Extra hours = 17,398 - 15,388 = 2,010 (Allocated to A)

∴ The production of product B should be full capacity

i.e. Total products produced by B = 3847

Answer from: Quest

answer; i believe a ( newsletter ) should be sent;

Answer from: Quest

it should be

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Dustin Co. makes three products, A, B and C. They have a constrained resource - machine hours. There...