ACTG2020_Week5 2014 Ch12CMD (1)

50 min 1100 min 2400 min 1100 min 1300 min lo 3

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Unformatted text preview: ed Resource (Machine A1) Weekly demand for Product 2 Time required per unit Total time required to make Product 2 Total time available Time used to make Product 2 Time available for Product 1 Time required per unit Production of Product 1 × 2,200 units 0.50 min. 1,100 min. ÷ 2,400 1,100 1,300 1.00 1,300 min. min. min. min. units LO 3 Utilization of a Constrained Resource According to the plan, we will produce According 2,200 units of Product 2 and 1,300 of Product 1. Our contribution margin looks like this. looks Production and sales (units) Contribution margin per unit Total contribution margin Product 1 1,300 $ 24 $ 31,200 Product 2 2,200 $ 15 $ 33,000 The total contribution margin for Ensign is $64,200. The LO 3 Quick Check Colonial Heritage makes reproduction colonial furniture from select hardwoods. Chairs Selling price per unit $80 Variable cost per unit $30 Board feet per unit 2 Monthly demand 600 Tables $400 $200 10 100 The company’s supplier of hardwood will only be able to supply 2,000 board feet this month. Is this enough hardwood to satisfy demand? a. Yes b. No LO 3 Quick Check Chairs Selling price per unit $80 Variable cost per unit $30 Board feet per unit 2 Monthly...
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This note was uploaded on 03/28/2014 for the course ACTG 2020 taught by Professor Lizfarrel during the Spring '11 term at York University.

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