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Exercise 4-49(Algo) Theory of Constraints (LO 4-5) Leach Finishing makes various metal fittings...

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Accounting

Exercise 4-49(Algo) Theory of Constraints (LO 4-5)
Leach Finishing makes various metal fittings for the construction industry. Three of the fittings, models x-12,x-24, and x-30, require
grinding on a patented machine of which Leach has only one. The cost of production information for the three products follow:
The testing machine used for both models has a capacity of 2,990 hours annually. Fixed manufacturing costs are $488,000 annually.
Required:
a. Suppose that Leach Finishing can sell at most 56,800 units of any one fitting. How many units of each fitting model should Leach
Finishing produce annually?
b. Suppose that Leach Finishing can sell at most 16,200 units of any one fitting. How many units of each fitting should Leach Finishing
produce annually?
Complete this question by entering your answers in the tabs below.
Required A
Suppose that Leach Finishing can sell at most 56,800 units of any one fitting. How many units of each fitting model should
Leach Finishing produce annually?
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