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kap26 [50]
2 years ago
14

Muir Manufacturing produces two popular grades of commercial carpeting among its many other products. In the coming production p

eriod, Muir needs to decide how many rolls of each grade should be produced in order to maximize profit. Each roll of Grade X carpet uses 50 units of synthetic fiber requires 25 hours of production time, and needs 20 units of foam backing. Each roll of Grade Y carpet uses 40 units of synthetic fiber requires 28 hours of production time, and needs 15 units of foam backing. The profit per roll of Grade X carpet is $200 and the profit per roll of Grade Y carpet is $160. In the coming production period, Muir has 3000 units of synthetic fiber available for use. Workers have been scheduled to provide at least 1800 hours of production time (overtime is a possibility). The company has 1500 units of foam backing available for use.
How many rolls of Grade X & Grade Y should be produced to maximize profits?
Business
1 answer:
Rufina [12.5K]2 years ago
4 0

Answer:

With 16 Grade X and 54 Grade Y the company maximize their profit at 11,840 dollars

Explanation:

We set up the scenario in Excel and use SOLVER tool:

X = 50 synthetic + 25 labor + 20 foam

Y = 40 synthetic + 28 labor + 15 foam

Profit:

X = 200

Y = 160

Constraing:

synthetics <= 3,000

foam <= 1,500

Grade X and Grade Y are integer.

goal: maximize profit

16 of Grade X

and 54 of grade Y

16 x 50 = 800

16 x 30  = 540

54 x 40  = 2,160

54 x 15  =    810

Profit:

16 x 200 + 54 x 160 = 11840

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Solution

Given :

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Standard variable overhead rate = $ 4.60 per hour

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Actual variable overhead incurred = $ 44,940

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Therefore, output absorbed, V.OH = SHAO x budget OH/hr

                                                    = (2100 units x 4.6 per unit) x $ 4.60 per hour

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The Input Absorbed V.OH = actual hours x budgeted OH/hour

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                                            = $ 43,240

Therefore, the variable overhead rate variance is = $ 43,240 - $ 44,436

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One way to prevent relapse is to recognize and use the tools we have to be active. what are some tools you have gained this seme
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Answer:

d.Yes, income will increase by $30,000

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Answer:

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