CSUCI Company produces products and sells four products A, B, C and D. The follo
ID: 2597178 • Letter: C
Question
CSUCI Company produces products and sells four products A, B, C and D. The following data relate to its ou Daly demand in units Selling price per unt 70 80 100 #30S 26 $ 36$ 40 Direct material cost per nitTo12 Labor time in 16 16 minutes per of 1.022 minutes are $3,200 per Totar CSUCI Company uses the tradeona, approach to deatrng with scarce mones 1. what order should CSUCI produce the products? a AD.CB b BD.CA 2 What is the contribution margin per minute for product A? a. 36 b. 40 d. 14 3. How many units of product C should be produced each day? b. 83 c 90 4 How many units of product A should be produced each day? a 180 b. 36 0Explanation / Answer
Answer:
1
In what order should CSUCI produce the products?
Answer; DBCA
Explanation to the answer:
A
B
C
D
Daily demand in units
180
120
90
150
Selling price per unit (A)
70
50
80
100
Variable costs per unit (b)
30
26
36
49
Contribution margin (c=a-B)
40
24
44
51
Deided by Labor time in minutes per unit D
5
2
4
3
Contribution margin per labor hour(C/D)
8
12
11
17
Rank
4
2
3
1
______________________________________________
2
the contribution margin per minute for product A =$8
Explanation to the answer:
A
Daily demand in units
180
Selling price per unit (A)
70
Variable costs per unit (b)
30
Contribution margin (c=a-B)
40
Deided by Labor time in minutes per unit D
5
Contribution margin per labor hour(C/D)
8
Rank
4
__________________________________________________
3
How many units of product C should be produced each day
Answer: 83 units
A
B
C
D
Daily demand in units
180
120
90
150
Labor time in minutes per unit
5
2
4
3
Rank
4
2
3
1
Time available
240
83
450
Available tme
1022
Less: produce rank 1 unit=150*3
-450
Less: produce rank 2 unit=120*2
-240
Available time for rank 3 product
332
Unit can be produce=332/4=83
83
_____________________________________________
4
How many units of product A should be produced each day
Answer= 0 units
A
B
C
D
Daily demand in units
180
120
90
150
Labor time in minutes per unit
5
2
4
3
Rank
4
2
3
1
Time available
0
240
83
450
A
B
C
D
Daily demand in units
180
120
90
150
Selling price per unit (A)
70
50
80
100
Variable costs per unit (b)
30
26
36
49
Contribution margin (c=a-B)
40
24
44
51
Deided by Labor time in minutes per unit D
5
2
4
3
Contribution margin per labor hour(C/D)
8
12
11
17
Rank
4
2
3
1