The Constraint at Dreyfus Inc

question 47

Essay

The constraint at Dreyfus Inc.is an expensive milling machine.The three products listed below use this constrained resource. 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:

Net Loss

The result when a company's expenses exceed its revenues during a specific period, indicating that the business incurred more costs than the income it generated.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee without controlling those policies.

Common Stock

Equity owning in a firm that grants shareholders voting rights and a share in the company's profits, typically through dividends.