Exhibit 7-7
Fishing Products Company produces three types of fishing poles: Light,Medium,and Heavy.The poles are produced in separate departments and sent to the quality testing department before being shipped.A labor-hour bottleneck has been identified in the quality testing department due to the high skill requirements of the job.Fishing Products would like to optimize its use of labor hours by producing the two most profitable fishing poles.Information for each pole follows:
$$\begin{array} { l c c c }
& \begin{array} { c }
\text { Quality Testing } \
\text { Labor-hours }
\end{array} & \text { Price } & \text { Variable Cost } \
\text { Light } & 2 & \$ 300 & \$ 170 \
\text { Mediurn } & 3 & 500 & 200 \
\text { Heavy } & 5 & 1,200 & 380
\end{array}$$
-Refer to Exhibit 7-7.Which two products would Fishing Products prefer to sell to optimize the use of labor hours in the quality testing department?

Question

Exhibit 7-7
Fishing Products Company produces three types of fishing poles: Light,Medium,and Heavy.The poles are produced in separate departments and sent to the quality testing department before being shipped.A labor-hour bottleneck has been identified in the quality testing department due to the high skill requirements of the job.Fishing Products would like to optimize its use of labor hours by producing the two most profitable fishing poles.Information for each pole follows:
 $$\begin{array} { l c c c } 
& \begin{array} { c } 
\text { Quality Testing } \
\text { Labor-hours }
\end{array} & \text { Price } & \text { Variable Cost } \
 \text { Light } & 2 & \$ 300 & \$ 170 \
\text { Mediurn } & 3 & 500 & 200 \
\text { Heavy } & 5 & 1,200 & 380
\end{array}$$
-Refer to Exhibit 7-7.Which two products would Fishing Products prefer to sell to optimize the use of labor hours in the quality testing department?

Quizplus · Accepted Answer

The Answer of Exhibit 7-7
Fishing Products Company produces three types of fishing poles: Light,Medium,and Heavy.The poles are produced in separate departments and sent to the quality testing department before being shipped.A labor-hour bottleneck has been identified in the quality testing department due to the high skill requirements of the job.Fishing Products would like to optimize its use of labor hours by producing the two most profitable fishing poles.Information for each pole follows:
 $$\begin{array} { l c c c } 
& \begin{array} { c } 
\text { Quality Testing } \
\text { Labor-hours }
\end{array} & \text { Price } & \text { Variable Cost } \
 \text { Light } & 2 & \$ 300 & \$ 170 \
\text { Mediurn } & 3 & 500 & 200 \
\text { Heavy } & 5 & 1,200 & 380
\end{array}$$
-Refer to Exhibit 7-7.Which two products would Fishing Products prefer to sell to optimize the use of labor hours in the quality testing department?

Exhibit 7-7 Fishing Products Company Produces Three Types of Fishing

Exhibit 7-7
Fishing Products Company Produces Three Types of Fishing