The Constraint at Crumedy Inc

question 125

Essay

The constraint at Crumedy Inc.is an expensive milling machine.The three products listed below use this 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?

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Definitions:

Fraudulent Sale

A transaction in which deception is used to gain a dishonest advantage, typically involving the misrepresentation of the value or condition of an item or service.

Executive Branch

The branch of government responsible for implementing and enforcing the laws passed by the legislative body, typically headed by the president or prime minister.

SEC

The U.S. Securities and Exchange Commission, responsible for regulating the stock market and protecting investors by ensuring fairness and transparency.

Fraud-on-the-market Theory

A judicial presumption that the price of a company's stock reflects all publicly known information, including fraudulent statements, affecting investors' decisions.