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48. The company is considering launching a new product that would have a variable cost of
$158.00 per unit and no avoidable fixed costs. It would require 9 minutes of the constrained
resource. The absolute minimum acceptable selling price for the new product should be:
Galapon Corporation's two products have the following characteristics:
The constrained resource is a particular machine that is available for 10,100 minutes each month.
Each unit of product P66G requires 4 minutes on this machine and each unit of product H98V
requires 18 minutes on this machine.
49. How many units of product H98V should be produced each month?
50. Up to how much should the company be willing to pay to obtain enough of the
constrained resource to satisfy demand for the two existing products?
Wakeland Corporation's two products have the following characteristics:
The constrained resource is a particular machine that is available for 10,300 minutes each month.
Each unit of product F61C requires 5 minutes on this machine and each unit of product E01W
requires 7 minutes on this machine.
51. How many units of product E01W should be produced each month?
52. What is the maximum contribution margin the company can earn per month?
The management of Coppler Corporation has provided the following data concerning its
two products:
The constrained resource is a particular machine that is available for 9,700 minutes each month.
53. How many units of product O85D should be produced each month?
54. What is the maximum contribution margin the company can earn per month?
Martorell Products Inc. makes two products—C39X and H08L. Product C39X's selling price
is $54.00 and its unit variable cost is $43.20. Product H08L's selling price is $496.00 and its unit
variable cost is $446.40. The monthly demand is 2,500 units for product C39X and 510 units for
H08L. The constrained resource is a particular machine that is available for 10,300 minutes each
month. Each unit of product C39X requires 3 minutes on this machine and each unit of product
H08L requires 16 minutes on this machine.
55. How many units of product H08L should be produced each month?
56. What is the maximum contribution margin the company can earn per month?
Lesser Corporation has four products that use the same constrained resource. Data
concerning those products appear below:
The company does not have enough of the constrained resource to satisfy for demand of all four
products.
57. If salespersons are paid commissions that are a set percentage of sales, which product
would they prefer to sell? In other words, if it is a choice between selling one unit of one product
and one unit of another, which product would they prefer to sell?
App B-51
58. From the standpoint of the entire company, if it is a choice between sales of one unit of
one product versus another, which product should the salespersons emphasize?
The same constrained resource is used by four different products at Kurdyla Corporation.
Data concerning those products appear below:
The company does not have enough of the constrained resource to satisfy for demand of all four
products.
59. If salespersons are paid commissions that are a set percentage of sales, which product
would they prefer to sell? In other words, if it is a choice between selling one unit of one product
and one unit of another, which product would they prefer to sell?
60. From the standpoint of the entire company, if it is a choice between sales of one unit of
one product versus another, which product should the salespersons emphasize?
App B-54
61. Huddleston Corporation is considering the following six long-term projects:
Only $63,800 is available for investment in these projects.
Required:
a. Determine which projects should be accepted.
b. Determine the total net present value of all of the accepted projects if your plan from part (a)
above is adopted.
