Please do not give solution in image format thanku Boyd Wood Company makes a regular and a deluxe grade of wood floors. Regular grade is sold at $9 persquare yard, and the deluxe grade is sold at $20 per square yard. The variable cost of making the regular grade is $6per square yard. It costs an extra $6 per square yard to make the deluxe grade. It takes 15 labor hours to make 100square yards of the regular grade, and 20 labor hours to make 100 square yards of the deluxe grade. There are4,000 hours of labor time available for production each week. The maximum weekly sales for the regular and thedeluxe model are 25,000 and 5,000 square yards, respectively. Fixed production costs total$450,000 per year. All selling costs are fixed.RequirementWhat is the optimal production level in number of square yards for each product?Requirement What is the optimal production level in number of square yards for each product?Begin by calculating the contribution margin per direct labor hour for each product grade. (Abbreviations usedDLH = Direct labor hour)RegularDeluxeContribution margin per DLHWhat is the optimal production level in number of square yards for each product? KBoyd Wood Company makes a regular and a deluxe grade of wood floors. Regular grade is sold at $9 persquare yard, and the deluxe grade is sold at $20 per square yard. The variable cost of making the regular grade is $6per square yard It costs an extra $6 per square yard to make the deluxe grade. It takes 15 labor hours to make 100square yards of the regular grade, and 20 labor hours to make 100 square yards of the deluxe grade. There are4,000 hours of labor time available for production each week. The maximum weekly sales for the regular and thedeluxe model are 25,000 and 5,000 square yards, respectively. Fixed production costs total$450,000 per year. All selling costs are fixed.RequirementWhat is the optimal production level in number of square yards for each product?accesDeyni uy Laicuidung une cuinarger per uur ou aci provuce graue. (revidi user.DLH= Direct labor hour)RegularDeluxeContribution margin per DLHWhat is the optimal production level in number of square yards for each product?Boyd Wood Company should produce square yards of theavailable capacity to produce square yards of thefirst and then use the remaining

If there is a scarce resource (here, the total number of direct labor hours) then, the resources are…

Boyd Wood Company makes a regular and a deluxe grade of wood floors. Regular grade is sold at $9 per square yard, and the deluxe grade is sold at $20 per square yard. The variable cost of making the regular grade is $6 per square yard. It costs an extra $6 per square yard to make the deluxe grade. It takes 15 labor hours to make 100 square yards of the regular grade, and 20 labor hours to make 100 square yards of the deluxe grade. There are 4,000 hours of labor time available for production each week. The maximum weekly sales for the regular and the deluxe model are 25,000 and 5,000 square yards, respectively. Fixed production costs total $450,000 per year. All selling costs are fixed. Requirement What is the optimal production level in number of square yards for each product? Requirement What is the optimal production level in number of square yards for each product? Begin by calculating the contribution margin per direct labor hour for each product grade. (Abbreviations used DLH = Direct labor hour) Regular Deluxe Contribution margin per DLH What is the optimal production level in number of square yards for each product?

Boyd Wood Company makes a regular and a deluxe grade of wood floors. Regular grade is sold at $9 per square yard, and the deluxe grade is sold at $20 per square yard. The variable cost of making the regular grade is $6 per square yard. It costs an extra $6 per square yard to make the deluxe grade. It takes 15 labor hours to make 100 square yards of the regular grade, and 20 labor hours to make 100 square yards of the deluxe grade. There are 4,000 hours of labor time available for production each week. The maximum weekly sales for the regular and the deluxe model are 25,000 and 5,000 square yards, respectively. Fixed production costs total $450,000 per year. All selling costs are fixed. Requirement What is the optimal production level in number of square yards for each product? Requirement What is the optimal production level in number of square yards for each product? Begin by calculating the contribution margin per direct labor hour for each product grade. (Abbreviations used DLH = Direct labor hour) Regular Deluxe Contribution margin per DLH What is the optimal production level in number of square yards for each product?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter12: Integer Linear Optimization_models

Section: Chapter Questions

Problem 4P: Hawkins Manufacturing Company produces connecting rods for 4- and 6-cylindcr automobile engines...

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Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profits increase if 200 more hours of machine time can be obtained?
Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Hawkins Manufacturing Company produces connecting rods for 4- and 6-cylindcr automobile engines using the same production line. The cost required to set up the production line to produce the 4-cylinder connecting rods is 2,000, and the cost required to set up the production line for the 6-cylinder connecting rods is 3,500. Manufacturing costs are 15 for each 4-cylinder connecting rod and 18 for each 6-cylinder connecting rod. There is no production on weekends, so on Friday the line is disassembled and cleaned. On Monday, the line must be set up to run whichever product will be produced that week. Once the line has been set up, the weekly production capacities are 6,000 6-cylinder connecting rods and 8,000 4-cylinder connecting rods. Let x4 = the number of 4-cylinder connecting rods produced next week x6 = the number of 6-cylinder connecting rods produced next week s4 = 1 if the production line is set up to produce the 4-cylinder connecting rods; 0 if otherwise s6 = 1 if the production line is set up to produce the 6-cylinder connecting rods; 0 if otherwise a. Using the decision variables x4 and s4, write a constraint that sets next weeks maximum production of the 4-cylinder connecting rods to either 0 or 8,000 units. b. Using the decision variables x6 and s6, write a constraint that sets next weeks maximum production of the 6-cylinder connecting rods to either 0 or 6,000 units. c. Write a constraint that requires that production be set up for exactly one of the two rods. d. Write the cost function to be minimized.
Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made?
Summer company manufactures beach chairs. $ 4.00 of direct materials are needed for each chair. Labor is $ 15 an hour. The company manufactures 3 chairs per hour. Indirect costs are $ 9.00 per hour. Commissions to sellers are $ 2.00 per unit sold. The cost of a chair will be:
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Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service minimum demand for each product of 4,000 units, how much will profit increase if 200 more hours of machine time can be obtained?
Widgeon Co. manufactures three products: Bales, Tales, and Wales. Their selling prices are $55, $78, and $32, respectively. The variable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales, 7 hours; and Wales, 1 hour.What is the contribution per machine hour for Wales?
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Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 27,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Materials $0.23 per roll Labor 0.39 per roll Variable overhead 0.15 per roll Fixed overhead 0.20 per roll A potential supplier has offered to sell Reuben the rolls for $0.87 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? Reuben would see a $ in profit if he buys the rolls.
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