Solved

US Pyrotechnics (USP) Is a Fireworks Manufacturing Company

Question 79

Essay

US Pyrotechnics (USP) is a fireworks manufacturing company. Annual celebrations are rapidly approaching, and USP only has 50 pounds of powder left (and their suppliers have run out as well). USP manufactures three types of fireworks: Aerials (for large venues) Grounders (for home use), and Poppers (for sale in retail stores).
Management is wondering which fireworks should be produced with the remaining powder, in order to maximize profits. The following information shows the per-unit information regarding the production and sale of these fireworks:
US Pyrotechnics (USP) is a fireworks manufacturing company. Annual celebrations are rapidly approaching, and USP only has 50 pounds of powder left (and their suppliers have run out as well). USP manufactures three types of fireworks: Aerials (for large venues) Grounders (for home use), and Poppers (for sale in retail stores).  Management is wondering which fireworks should be produced with the remaining powder, in order to maximize profits. The following information shows the per-unit information regarding the production and sale of these fireworks:    Assume that selling costs are negligible at this point, given the current market for fireworks and USP's established network. Which type of firework would be the most profitable for USP to produce? Assume that selling costs are negligible at this point, given the current market for fireworks and USP's established network.
Which type of firework would be the most profitable for USP to produce?

Correct Answer:

verifed

Verified

Contribution margin/pound of powder:
Aer...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents