Mathematics · Throughput Accounting
A manufacturing company uses machine C, operational for 5 hours a day, to manufacture four products: W, X, Y, and Z. Factory costs are $150,000 per day. The company uses throughput accounting to maximize profits. Product details: - W: Production rate = 200 units/hr, Selling price = $350, Material cost = $120, Conversion cost = $40 - X: Production rate = 500 units/hr, Selling price = $190, Material cost = $95, Conversion cost = $25 - Y: Production rate = 400 units/hr, Selling price = $270, Material cost = $160, Conversion cost = $20 - Z: Production rate = 350 units/hr, Selling price = $215, Material cost = $75, Conversion cost = $35 If machine C operational hours cannot be increased, what is the production ranking of product Y based on throughput per machine hour?
- 1Fourth✓
- 2Third
- 3Second
- 4First
Correct answer
Fourth
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