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HW15sol

# HW15sol - CM per hour from part D \$20.00 \$28.00 Hours need...

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Homework Problems Problem 15 A. Produce the product with the larger CM per constrained resource, in this case, hours. Big Moe Little Joe Contribution margin per unit \$29.00 \$14.00 Hours need to produce each unit 1.45 hrs. 0.50 hrs. CM per hour \$20.00 \$28.00 Because Little Joe generates \$28 per labor hours which is more than the \$20 per hour for Big Moe's, produce only Little Joe. B. Produce more of the product with the larger CM per constrained resource, in this case, hours. Big Moe Little Joe
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Unformatted text preview: CM per hour from part D. \$20.00 \$28.00 Hours need to produce each unit 1.45 hrs. 0.50 hrs. Hours to be used to produce 800 Big Moes = 1.45 hours x 800 units = 1,160 hours Hours remaining for Little Joe = 8,000 - 1,160 = 6,840 hours Number to produce = 8,000 / 0.50 hrs = 16,000 units of Little Joe and zero Big Moes. Produce 800 units of the least profitable per hour = Big Moe , and remainder for Little Joe. Number to produce = 6,840 / 0.50 hrs = 13,680 units of Little Joe...
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