Question

at Submit Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concoming the products appear below: Selling price per unit Variable cost per unit Time on the constraint (minutes) $326.21 $543.47 $504.00 $252.$420.81 $397.66 3.50 7.50 8.99 Skipped Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places. Ranking a. GK Maximum amount

Answer 1

Solution: a) 136.22 593.47 502.00 SP per unit Less : VC per unit CM per unit /minutes required per unit CM per minute Ranking 326.21 543.47 504.00 252.00 420.81 397.66 74.21 122.66 106.34 3.50 7.50 8.00 21.20 16.35 13.29 | 1 | 2 | 3 b) Maxmimum amount (CM per minute of lease profitable job) 13.29