The Justin Manufacturing Company produces products A, B, and C. Although Justin could sell up to 25 units of A, 30 units of B, and 25 units of C each week, a limitation of 179 machine-hours per week prevents Viking from meeting these sales demands. The product information is as follows:
There are no fixed selling or administrative expenses. Fixed manufacturing costs are $1,000 per week.
Required:
a. Develop a schedule indicating the order in which Viking should allocate machine-hours to each product.
b. Develop a schedule indicating the number of units of each product that Viking should produce each week.
c. Develop a schedule indicating Viking's weekly profit or loss from implementing this production schedule.

Question

The Justin Manufacturing Company produces products A, B, and C. Although Justin could sell up to 25 units of A, 30 units of B, and 25 units of C each week, a limitation of 179 machine-hours per week prevents Viking from meeting these sales demands. The product information is as follows:
  There are no fixed selling or administrative expenses. Fixed manufacturing costs are $1,000 per week.
Required:
a. Develop a schedule indicating the order in which Viking should allocate machine-hours to each product.
b. Develop a schedule indicating the number of units of each product that Viking should produce each week.
c. Develop a schedule indicating Viking's weekly profit or loss from implementing this production schedule.

Quizplus · Accepted Answer

The Answer of The Justin Manufacturing Company produces products A, B, and C. Although Justin could sell up to 25 units of A, 30 units of B, and 25 units of C each week, a limitation of 179 machine-hours per week prevents Viking from meeting these sales demands. The product information is as follows:
  There are no fixed selling or administrative expenses. Fixed manufacturing costs are $1,000 per week.
Required:
a. Develop a schedule indicating the order in which Viking should allocate machine-hours to each product.
b. Develop a schedule indicating the number of units of each product that Viking should produce each week.
c. Develop a schedule indicating Viking's weekly profit or loss from implementing this production schedule.

The Justin Manufacturing Company Produces Products A, B, and C