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:

Brand Awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm’s communications to consumers.

Autocratic

A leadership style characterized by individual control, where decisions are made without input from others.

Buying Center

A group of individuals within an organization who are involved in the decision-making process for purchasing products or services.

Decision Maker

An individual or group responsible for making choices or judgments in the context of purchasing or strategic planning.