The constraint at Mirsch Inc.is a key raw material.A total of 9,600 ounces of this constrained resource are available.Data concerning the company's two products,B01 and P46,appear below: $$\begin{array} { l r r }
& { \text { B01 } } & { \text { P46 } } \
\text { Demand (units) ...... } & 660 & 570 \
\text { Selling price .......... } & \$ 261.00 & \$ 276.00 \
\text { Variable cost ......... } & \$ 234.90 & \$ 248.40
\end{array}$$ Each unit of product B01 requires 9 ounces of the constrained raw material;each unit of product P46 requires 12 ounces.
Required:
a.In the present circumstances,which product is most profitable?
b.How much of each product should be produced?
c.The company is considering launching a new product whose variable cost is $210 and that requires 9 ounces of the constrained resource.What is the minimum acceptable selling price for the new product?

Question

The constraint at Mirsch Inc.is a key raw material.A total of 9,600 ounces of this constrained resource are available.Data concerning the company's two products,B01 and P46,appear below: $$\begin{array} { l r r } 
& { \text { B01 } } & { \text { P46 } } \
\text { Demand (units) ...... } & 660 & 570 \
\text { Selling price .......... } & \$ 261.00 & \$ 276.00 \
\text { Variable cost ......... } & \$ 234.90 & \$ 248.40
\end{array}$$ Each unit of product B01 requires 9 ounces of the constrained raw material;each unit of product P46 requires 12 ounces.
Required:
a.In the present circumstances,which product is most profitable?
b.How much of each product should be produced?
c.The company is considering launching a new product whose variable cost is $210 and that requires 9 ounces of the constrained resource.What is the minimum acceptable selling price for the new product?

Quizplus · Accepted Answer

The Answer of The constraint at Mirsch Inc.is a key raw material.A total of 9,600 ounces of this constrained resource are available.Data concerning the company's two products,B01 and P46,appear below: $$\begin{array} { l r r } 
& { \text { B01 } } & { \text { P46 } } \
\text { Demand (units) ...... } & 660 & 570 \
\text { Selling price .......... } & \$ 261.00 & \$ 276.00 \
\text { Variable cost ......... } & \$ 234.90 & \$ 248.40
\end{array}$$ Each unit of product B01 requires 9 ounces of the constrained raw material;each unit of product P46 requires 12 ounces.
Required:
a.In the present circumstances,which product is most profitable?
b.How much of each product should be produced?
c.The company is considering launching a new product whose variable cost is $210 and that requires 9 ounces of the constrained resource.What is the minimum acceptable selling price for the new product?

The Constraint at Mirsch Inc Each Unit of Product B01 Requires 9 Ounces of the of 9,600