Local Steel Construction Company Produces Two Products,steel and Wood Beams

question 176

Essay

Local Steel Construction Company produces two products,steel and wood beams.Steel beams have a unit contribution margin of $200,and wood beams have a unit contribution margin of $150.The demand for steel beams exceeds Local Steel Construction Company's production capacity,which is limited by available direct labor and machine-hours.The maximum demand for wood beams is 90 per week.Management desires that the product mix should maximize the weekly contribution toward fixed costs and profits.
Direct manufacturing labor is limited to 3,000 hours a week and 1,000 hours is all that the company's outdated machines can run a week.The steel beams require 120 hours of labor and 60 machine-hours.Wood beams require 150 labor hours and 120 machine-hours.
Required:
Formulate the

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Definitions:

Contingency Management

A behavioral therapy approach that rewards individuals for demonstrating desired behaviors or achieving specific goals.

Nondepressive Activities

Activities undertaken to promote psychological well-being or alleviate symptoms of depression, focusing on lifting mood and increasing engagement with life.

Providing Sympathy

The act of showing understanding and compassion towards another person’s suffering or hardships.

Irrational Thoughts

Thoughts that are not based on reason or logic, and often stem from misconceptions, fears, or misunderstandings.