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Closter Corporation Makes Three Products That Use the Current Constraint

question 8

Essay

Closter Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: Closter Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below:    Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. Show your work! b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?
Required:
a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. Show your work!
b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?


Definitions:

Arranging Trades

The process of facilitating exchange of goods, services, or financial instruments between parties.

Transactions

The act of conducting business or commercial dealings, involving the exchange of goods, services, or funds.

Middleman

An intermediary who facilitates transactions between buyers and sellers, potentially adding value in the distribution channel.

Arranging Trades

The process of organizing or facilitating exchanges of goods, services, or financial instruments between parties.

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