The Constraint at Trek Inc Required:
A

question 89

Essay

The constraint at Trek Inc. is an expensive milling machine. The three products listed below use this constrained resource.
$\begin{array}{lrrr}&\text {9p}&\text {8l}&\text {7n}\\ \text { Selling price per unit } & \$ 404.58 & \$ 478.74 & \$ 358.44 \\\text { Variable cost per unit } & \$ 308.88 & \$ 371.30 & \$ 285.36 \\\text { Time on the constraint (minutes) } & 6.60 & 7.90& 5.80\end{array}$
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?

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Definitions:

Data

A compilation of statistics and information for analysis or reference purposes.

Equal

Having the same value, quantity, measure, or significance in comparison.

Set of Data

A collection of related pieces of information, typically measurements or observations, that are analyzed to derive a conclusion.

Mean

The mean of a number set, found by summing all the numbers together and then dividing by the total number of values in the set.