Minaya Corporation Has Two Products,M20 and Y53,that Use the Same

question 28

Essay

Minaya Corporation has two products,M20 and Y53,that use the same constrained resource--a critical raw material.Data concerning those products follow: $\begin{array}{c}\begin{array}{lll}\\\text {Selling price.......................................................................}\\\text {Variable cost.....................................................................}\\\text {Constrained resource required per unit (grams).................}\\\text {Demand (units).................................................................}\end{array}\begin{array}{rr}\mathrm{M} 20 & {Y 53} \\\$ 192.00 & \$ 220.00 \\\$ 153.60 & \$ 176.00 \\8 & 10 \\820 & 760 \end{array}\end{array}$
The total amount of the constrained resource available is 9,900 grams.
Required:
a.Which product is most profitable,given the company's constraint?
b.How much of each product should be produced?
c.What is the total contribution margin if your plan in part (b)above is followed?

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Definitions:

Sales Expenses

Sales expenses are the costs incurred directly or indirectly from selling a product or service, including commissions, advertising, and distribution costs.

Productive Number

A metric or figure that represents the effectiveness or efficiency of a process, often used in the context of business or production analytics.

Nonselling Time

Periods within a salesperson's schedule that are not directly devoted to selling activities, such as administrative tasks or travel.

Sales Call Allocation

The process of planning and distributing sales calls or visits among different territories or customer segments to optimize effectiveness.