Florence Corporation Makes Three Products That Use the Current Constraint

question 109

Essay

Florence Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below:
$\begin{array}{llr} &\text {X1}& \text {R2}& \text {Z3}\\ \text {Selling price per unit } &\$325.89&\$543.15&\$508.00\\ \text { Variable cost per unit } &\$251.94&\$420.75&\$397.60\\ \text { Time on the constraint (minutes) } &5.10&8.50&8.00\end{array}$

Required:
a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. Show your work!
b. Assume that sufficient constraint time is available 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?

Know the four Ps of marketing and their application.

Have insight into the multifaceted nature of pricing.

Grasp the role and interactions involved in supply chain management.

Understand the process and importance of customer relationship management (CRM) in marketing.

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Definitions:

Resistant

Describes an opposition or inability to accept or go along with something; in a physical context, it relates to a material's ability to resist or withstand an applied force.

Persistent Emotion

A long-lasting emotional state that might influence someone's behavior and perception over an extended period.

Temperament

The innate traits that influence how one reacts to the environment, including mood, activity level, and emotional reactivity.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behavior, thoughts, and emotions.