5. Jamestown Furniture Co. is a small, butfast-growing manufacturer of living room furniture. Its...

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Accounting

5. Jamestown Furniture Co. is a small, butfast-growing manufacturer of living room furniture. Its twoprincipal products are end tables and sofas. There are fiveprocesses in the manufacturing at Jamestown: Cutting the lumber,cutting the fabric, sanding, staining, and assembly. Jamestown hasone employee working in fabric cutting and one employee working instaining. These are relatively skilled workers and could bereplaced only with some difficulty. The cutting and sandingoperations are performed by two workers each, and while there issome skill to these operations, it is less critical than forstaining and for fabric cutting. Assembly is the least skill-basedprocess and is currently done by one full-time employee and a groupof part timers who provide a total of 175 minutes of working timeper week. The other employees work a 40-hour week, with 5 hours offfor breaks, training, and personal time. Assume a fourweek month,and that by prior agreement, any of the employees can be switchedfrom one task to another.

The current demand for Jamestown's products and sales prices areprovided below. Jamestown expects demand to increase significantlyin the coming months (this depends on whether it is able tosuccessfully obtain the order it is negotiating to get from a motelchain). The materials cost for the table is $150 and $275 for thesofa.

End Tables

Sofas

Price

$500

$800

Current demand (units per month)

250

150

The time required for each activity and the total time availableare shown below.

Required time for Table

Required time for Sofas

Required total time

Hours Available

Slack TIme

Cut

150

45

195

280

85

Sand

100

30

130

280

150

Assemble

125

225

350

700

350

Stain

250

120

370

280

-90

Cut Fabric

0

90

90

140

50

Required:

What is the most profitable production plan for Jamestown?Explain your answer with supporting Calculations.

Answer & Explanation Solved by verified expert
4.0 Ratings (497 Votes)
given data particulars demand price material cost table 250 500 150 sofa 150 800 275 calculation of required time for table time for complete a work for table required time for    See Answer
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In: Accounting5. Jamestown Furniture Co. is a small, butfast-growing manufacturer of living room furniture. Its two...5. Jamestown Furniture Co. is a small, butfast-growing manufacturer of living room furniture. Its twoprincipal products are end tables and sofas. There are fiveprocesses in the manufacturing at Jamestown: Cutting the lumber,cutting the fabric, sanding, staining, and assembly. Jamestown hasone employee working in fabric cutting and one employee working instaining. These are relatively skilled workers and could bereplaced only with some difficulty. The cutting and sandingoperations are performed by two workers each, and while there issome skill to these operations, it is less critical than forstaining and for fabric cutting. Assembly is the least skill-basedprocess and is currently done by one full-time employee and a groupof part timers who provide a total of 175 minutes of working timeper week. The other employees work a 40-hour week, with 5 hours offfor breaks, training, and personal time. Assume a fourweek month,and that by prior agreement, any of the employees can be switchedfrom one task to another.The current demand for Jamestown's products and sales prices areprovided below. Jamestown expects demand to increase significantlyin the coming months (this depends on whether it is able tosuccessfully obtain the order it is negotiating to get from a motelchain). The materials cost for the table is $150 and $275 for thesofa.End TablesSofasPrice$500$800Current demand (units per month)250150The time required for each activity and the total time availableare shown below.Required time for TableRequired time for SofasRequired total timeHours AvailableSlack TImeCut1504519528085Sand10030130280150Assemble125225350700350Stain250120370280-90Cut Fabric0909014050Required:What is the most profitable production plan for Jamestown?Explain your answer with supporting Calculations.

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