Solution-In what order should Orange Company produce its

In what order should Orange Company produce its products

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Reference no: EM133061827

Question - Orange Company makes three products in a single facility. Data concerning these products follow:

Products	A	B	C
Selling price per unit	$85.00	$74.00	$78.00
Direct materials	$20.00	$13.00	$16.00
Direct labour	$18.00	$7.00	$7.00
Variable manufacturing overhead	$6.00	$3.00	$1.00
Variable selling cost per unit	$3.00	$3.00	$3.00
Mixing minutes per unit	6.00	5.00	8.00
Direct materials in KG per unit	5.00	6.00	6.00
Monthly demand in units	2,000	3,000	1,000

The mixing machines and direct materials used are potentially constraints in the production facility. A total of 28,400 minutes are available per month on these machines. Direct labour is a variable cost in this company. Total direct materials available are 43,000 kg.

Required -

1) In what order should Orange Company produce its products if mixing minutes per unit are the only production constraint?

2) In what order should Orange Company produce its products if direct materials used are the only production constraint?

Reference no: EM133061827

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In what order should Orange Company produce its products

Reference no: EM133061827

Reference no: EM133061827

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