Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company is currently facing a labor shortage, only 4,800 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Large Mouth (Product A) Small Mouth (Product Mini Mouth (Product C) B) $38.00 $ 19.00 $ 52.00 $48.00 3.3 1,700 Sales price Variable cost per unit. Direct labor hours per unit Demand (units) Required: a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced during the labor shortage to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources? $ 70.00 $ 53.00 2.1 1,200 1.7 1,900
Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company is currently facing a labor shortage, only 4,800 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Large Mouth (Product A) Small Mouth (Product Mini Mouth (Product C) B) $38.00 $ 19.00 $ 52.00 $48.00 3.3 1,700 Sales price Variable cost per unit. Direct labor hours per unit Demand (units) Required: a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced during the labor shortage to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources? $ 70.00 $ 53.00 2.1 1,200 1.7 1,900
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 7PB: Remarkable Enterprises requires four units of part A for every unit of Al that it produces....
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