Reference no: EM13825491

Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows:

Table A Table B Table C

Sales price $ 54 $ 58 $ 72

Direct materials 11 12 13

Direct labor 3 5 9

Variable manufacturing overhead 5 5 5

Fixed manufacturing overhead 7 7 7

Required number of labor hours 0.5 0.5 1

Required number of machine hours 4.0 2.50 2.0

Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows:

Table A 60,000 units

Table B 20,000 units

Table C 20,000 units

Required:

1. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3.

Table A __

Table B __

Table C __

2.If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)

Unit A units produced:_____

Unit B units prodcued:_____

Unit C units produced:_____

3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3.

Table A __

Table B __

Table C __

4. If Blossom has only 246,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)

Unit A units produced:_____

Unit B units prodcued:_____

Unit C units produced:_____