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Jendro LLC Is a Consulting Firm That Is Considering Six

question 19

Essay

Jendro LLC is a consulting firm that is considering six projects for the upcoming period.The six projects under consideration are listed below,along with relevant data.  Amount of Constrained  Incremental Profit  Resource Required (hours)  Project 1...... $4,65413 Project 2...... $7,11018 Project 3...... $8,81426 Project 4...... $4,99719 Project 5...... $7,75031 Project 6...... $6,03030\begin{array}{cc}&&\text { Amount of Constrained }\\&\text { Incremental Profit } & \text { Resource Required (hours) } \\\text { Project 1...... } &\$ 4,654 & 13 \\\text { Project 2...... } &\$ 7,110 & 18 \\\text { Project 3...... } &\$ 8,814 & 26 \\\text { Project 4...... } &\$ 4,997 & 19 \\\text { Project 5...... } &\$ 7,750 & 31 \\\text { Project 6...... } &\$ 6,030 & 30 \end{array} The managing partner's time is the constraint in the firm.Only 76 hours of this constrained resource are available during the upcoming period.
Required:
a.Determine which projects should be accepted for the upcoming period.
b.Determine the total incremental profit for the upcoming period if your plan from part (a)above is adopted.


Definitions:

Research and Development

This is a set of activities intended to improve existing products or services or to create new ones, often involving scientific or technological innovation.

Straight-Line Depreciation

An approach to evenly spread out an asset's expense over its lifespan.

Overhead Allocation

The process of distributing indirect costs to various cost objects, such as products or departments, to accurately reflect the resources consumed by each.

Intangibles

Assets owned by a company that don't have physical substance but have value, such as patents, trademarks, and copyrights.

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