A Computer Retail Store Sells Two Types of Flat Screen

question 22

Essay

A computer retail store sells two types of flat screen monitors: 17 inches and 19 inches,with a profit contribution of $300 and $250,respectively.The monitors are ordered each week from an outside supplier.As an added feature,the retail store installs on each monitor a privacy filter that narrows the viewing angle so that only persons sitting directly in front of the monitor are able to see on-screen data.Each 19" monitor consumes about 30 minutes of installation time,while each 17" monitor requires about 10 minutes of installation time.The retail store has approximately 40 hours of labor time available each week.The total combined demand for both monitors is at least 40 monitors each week.How many units of each monitor should the retail store order each week to maximize its weekly profits and meet its weekly demand?

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Definitions:

Work in Process

Inventory representing partially completed goods, which includes the cost of raw materials, labor, and overhead.

Cost Reconciliation

The process of verifying and reconciling the total cost incurred against the costs accounted for in a specific period.

Weighted-Average Method

an inventory costing method that assigns a cost to inventory and to the goods sold based on the average cost of all similar items available during a certain period.

Work in Process Inventory

The value of raw materials, labor, and overhead costs for products that are partially completed but not yet ready for sale.