Device revenue per unit sold material cost per unit

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Reference no: EM13875231

Quitmeyer Electronics Incorporated manufactures the following six microcomputer peripheral devices: internal modems, external modems, graphics circuit boards, CD drives, hard disk drives, and memory expansion boards. Each of these technical products requires time, in minutes, on three types of electronic testing equipment, as shown in the table shown below.

The first two test devices are available 120 hours per week. The third (device 3) requires more preventive maintenance and may be used only 100 hours each week. The market for all six computer components is vast, and Quitmeyer Electronics believes that it can sell as many units of each product as it can manufacture. The table that follows summarizes the revenues and material costs for each product:

Device Revenue per unit sold ($) Material Cost per unit($)

Internal Modem 200 35

External Modem 120 25

Graphics Circuit Board 180 40

CD drive 130 45

Hard disk drive 430 170

Memory expansion board 260 60

In addition, variable labor costs are $15 per hr for test device 1, $12 per hour for test device 2 and $18 per hour for test device 3.

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Reference no: EM13875231

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