Question

The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: WX KD FS Selling price per unit $ 335.11 $ 228.39 $ 199.14 Variable cost per unit $ 259.40 $ 173.22 $ 159.75 Minutes on the constraint 6.80 3.60 4.80 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.)

Answer 1

Answer:

The least profitable product is FS which yields 8.21 per constrain hours

so the company will pay up to this ammount for more of this resource

Explanation:

$\left[\begin{array}{cccc}&WX&KD&FS\\sales&335.11&228.39&199.14\\variable&259.4&173.22&159.75\\CM&75.71&55.17&39.39\\constrain&6.8&3.6&4.8\\CM \: constrain&11.13&15.325&8.21\\\end{array}\right]$

The least profitable product is FS which yields 8.21 per constrain hours

so the company will pay up to this ammount for more of this resource