Tansley Corporation Has Two Products That Use the Same Constrained

question 55

Essay

Tansley Corporation has two products that use the same constrained resource--a critical raw material. $\begin{array}{lrr}&\text { B99 } & \text { V94 } \\\text { Selling price }&\$ 322.00 & \$ 152.00 \\\text { Variable cost }&\$ 257.60 & \$ 106.40 \\\text { Constrained resource required per unit (grams) }&14 & 8 \\\text { Demand (units) }&460 & 890\end{array}$ The total amount of the constrained resource available is 9,500 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?
d. The company is considering launching a new product whose variable cost is $167 and that requires 16 grams of the constrained resource. What is the minimum selling price for the new product?

---

Definitions:

Romantic Relationship

A personal and intimate relationship between individuals characterized by love, commitment, and emotional bonding.

Memory

The mental faculty by which information is encoded, stored, and retrieved when needed, allowing for learning and retention over time.

Reconstructive Process

The method by which memories are not merely retrieved but reconstructed, often influenced by various factors like biases and new information.

Short-Term Memories

The component of memory that temporarily holds a small amount of information for a short period of time, from seconds to minutes.