Custom Furniture Manufactures a Small Table and a Large Table

question 123

Multiple Choice

Custom Furniture manufactures a small table and a large table. The small table sells for $800, has variable costs of $520 per table, and takes eight direct labor hours to manufacture. The large table sells for $1,200, has variable costs of $720, and takes sixteen direct labor hours to manufacture. The company has a maximum of 4,800 direct labor hours per month when operating at full capacity. If there are no constraints on sales of either product, and the company could choose any proportions of product mix that they wanted, what is the maximum contribution margin the company could earn?

• A) $122,000
• B) $176,000
• C) $154,500
• D) $168,000

Understand the basic concept and objectives of aggregate planning.

Identify the typical planning horizon for aggregate planning.

Recognize the importance of balancing production levels, inventory levels, and capacity levels to maximize profit.

Understand the role of linear programming in formulating aggregate plans.

---

Definitions:

Impact Evaluation

The systematic analysis of the changes that can be attributed to a particular intervention, such as a program or policy.

Process Evaluation

An assessment technique focused on the implementation process of a program or intervention, examining its fidelity, quality, and reach.

Administrative Policies

Guidelines and rules established by organizations to govern operations and decisions.

Financial Policies

Guidelines and rules that govern an organization's actions regarding financial operations, including spending, lending, and budgeting.