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Anonymous

Nov 09, 2024

Lie Around Furniture manufactures two​ products: Couches and Beds. The following data are​ available: Couches Beds Sales price

Lie Around Furniture manufactures two products: couches and beds. The following data is available: sales prices, variable costs, and the production capacity in machine hours per month. The company can manufacture a certain number of couches per machine hour or a different number of beds per machine hour. To maximize profits, which product should the company prioritize, and how many units of each product should be produced in a month?

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3 Answers

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Anonymous

Feb 18, 2025

the company should produce 5,200 / 0.5 = 10,400 beds, resulting in a gross profit of $3,692,000Explanation:The numbers are missing, so i looked them up:                              sales price          variable costs       machine hours Couches                    $550                    $350                    0.333Beds                          $750                    $395                     0.5total machine hours = 5,200the constraint here is machine hours, so we must determine the contribution margin per machine hour:couches = $200 / 0.333 = $600beds = $355 / 0.5 = $710 since the contribution margin per machine hour is higher for beds, then the company should produce 5,200 / 0.5 = 10,400 beds, resulting in a gross profit of $3,692,000
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Dr. Chaz Donnelly

Dec 23, 2024

My day has gone pretty good so far, you for asking.
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D
Delaney Pfeffer

Feb 17, 2025

answer; complain or request hazard correction from your employer;
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