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Wright,Inc

question 78

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Wright,Inc.produces three products.Data concerning the selling prices and unit costs of the three products appear below:
Wright,Inc.produces three products.Data concerning the selling prices and unit costs of the three products appear below:    Fixed costs are applied to the products on the basis of direct labor hours. Demand for the three products exceeds the company's productive capacity.The tapping machine is the constraint,with only 2,400 minutes of tapping machine time available this week. Required: a.Given the tapping machine constraint,which product should be emphasized? Support your answer with appropriate calculations. b.Assuming that there is still unfilled demand for the product that the company should emphasize in part (a)above,up to how much should the company be willing to pay for an additional hour of tapping machine time? Fixed costs are applied to the products on the basis of direct labor hours.
Demand for the three products exceeds the company's productive capacity.The tapping machine is the constraint,with only 2,400 minutes of tapping machine time available this week.
Required:
a.Given the tapping machine constraint,which product should be emphasized? Support your answer with appropriate calculations.
b.Assuming that there is still unfilled demand for the product that the company should emphasize in part (a)above,up to how much should the company be willing to pay for an additional hour of tapping machine time?

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Definitions:

Employable

Possessing the skills, qualifications, and attributes that make one a desirable candidate for employment.

Managerial Position

A role within an organization that involves supervising and making decisions for a team or department.

Outplacement Services

Services provided by organizations to help terminated employees find a new job.

Terminated Employees

Refers to individuals who have been dismissed or let go from their employment for various reasons, including performance issues, organizational restructuring, or misconduct.

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