Flash Electronics Company produces a variety of electronic equipment. One of the plants produces two laser...
Flash Electronics Company produces a variety of electronic equipment. One of the plants produces two laser printers: the deluxe and the regular. The demand for the printers is 1,000 units of the deluxe and 2,000 units of the regular. The deluxe printer is priced at $900 and the regular printer is priced at $750. The materials cost is $530 for the deluxe printer and $410 for the regular printer. In addition, the company has the following information for the four manufacturing processes (setups, machining, engineering, and packing) showing the amount of time (in minutes) required for each printer for each process, and the total minutes of time available for each process.
| Time Required/unit | Time Required/unit | Time | |||
| Name | Deluxe | Regular | Available | ||
| Setups | 30 | 20 | 80,000 | ||
| Machining | 90 | 60 | 220,000 | ||
| Engineering | 120 | 80 | 250,000 | ||
| Packing | 30 | 40 | 120,000 |
Required:
1. Which process(es), if any, are constraints for the current level of demand?
2. Given any constraints identified in part (1) above, determine the best production and sales plan for the two types of tables. This will be accomplished by performing all three steps based upon the structure below: (1) Identify the constraint (2) Identify the Most Profitable Product
(3)Identify the Most Profitable Product Mix
Homework Answers
| 1 | Calculating time required for demand units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time available | Deluxe (1000 units) | Regular (2000 units) | Total required time | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Setups | 80000 | 30000 | 40000 | 70000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Machining | 220000 | 90000 | 120000 | 210000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Engineering | 250000 | 120000 | 160000 | 280000 | Constraint, as the time required for demand quantities is more than available time in this department. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Packing | 120000 | 30000 | 80000 | 110000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Most profitable product mix | ||||||
| First we will produce 2000 units of Regular and then from balance hours in engineering department maximum possibel of Deluxe. | ||||||
| Regular | 2000 units | |||||
| Deluxe | 750 units | =(250000-160000)/120 |
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Flash Electronics Company produces a variety of electronic
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Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers:...
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Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...
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Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 $900 800,000 $750 Selling price Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Setups Number of setups 300 Machining Machine hours...
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Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...
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