Bell Company Produces and Sells Three Products (A, B, C)

question 89

Essay

Bell Company produces and sells three products (A, B, C).The following data relate to the three products.Management considers labor to be a fixed cost. $\begin{array}{lrrr}&A&B&C\\\text { Demand in units } & 120 & 110 & 100 \\\text { Selling price per unit } & \$ 100 & \$ 120 & \$ 105 \\\text { Raw material cost/unit } & \$ 50 & \$ 60 & \$ 60 \\\text { Labor time in minutes/unit } & 12 & 17 & 7\end{array}$ Required:
1.Calculate the contribution per labor minute for each product.
2.Determine the best product mix.Assume there are five employees, and given time for breaks, training, and regular meetings, there are a total of 2,200 minutes available per day.

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Definitions:

Classical Conditioning

An instructional process in which two stimuli are regularly paired together; the response, which is at first produced by the second stimulus, is eventually produced by the first stimulus on its own.

Rules of Sexual Behavior

The social and cultural norms governing sexual activities and relationships.

Luria

A reference to Alexander Luria, a Soviet neuropsychologist known for his work on cognitive development and brain injury.

Adolescence

The transitional stage of physical and psychological development that occurs between childhood and adulthood.