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Marvis Lumber Mill produces large wooden beams for construction. Lately, a labor shortage has caused the amount of direct labor hours to diminish to a point where production will likely fall next quarter. Production supervisors are also worried that one of the saw mills may not make it to the end of the quarter, resulting in a reduction of machine hours. Data for Marvis Lumber Mill's products are below:

Product Douglas Fir Cedar Oak White Pine Hemlock

Price $$80$ $$160$ $$120$ $$50$ $$220$

Variable Cost $$35$ $$110$ $$55$ $$18$ $$120$

Labor Hours per Unit $0\mathrm{.}20\mathrm{.}30\mathrm{.}250\mathrm{.}40\mathrm{.}5$

Machine Hours per Unit $12215$

Demand for the Quarter $20,0009,00015,00012,0005,000$

Available Labor Hours $14,000$

Available Machine Hours $75,000$

Required:

Fill out the charts and answer questions below concerning the constrained resources.

Product Douglas Fir Cedar Oak White Pine Hemlock

Contribution Margin$/$unit

Based on these calculations, put the beam types in priority order in accordance with profitability.

$1$

$2$

$3$

$4$

$5$

Assume Labor Hours are the constrained resource and fill out the chart below:

Product Douglas Fir Cedar Oak White Pine Hemlock

Contribution Margin$/$unit

Direct Labor Hours per Unit

CM per Labor Hour

Based on these calculations, put the beam types in priority order in accordance with profitability.

$1$

$2$

$3$

$4$

$5$

With Direct Labor hours as the constrained resource, fill out the chart below:

Product Douglas Fir Cedar Oak White Pine Hemlock

Demand

Labor Hours per unit

Total Direct Labor Hours

Note: All numbers should be shown as positive numbers.

Using the two prior charts above to make the calculations for remaining hours:

Labor Hours Available

Less: Priority $1$ Hours Demanded

Remaining Hours

Less: Priority $2$ Hours Demanded

Remaining Hours

Less: Priority $3$ Hours Demanded

Remaining Hours

Less: Priority $4$ Hours Demanded

Remaining Labor Hours

Fill out the chart below and use the final Remaining Hours above to calculate the units of the lowest priority product:

Product Douglas Fir Cedar Oak White Pine Hemlock Total

Units to Produce

Labor Hours per Unit

Total Direct Labor Hours

CM$/$Unit

Total Contribution Margin

Assume Machine Hours are the constrained resource and fill out the chart below:

Product Douglas Fir Cedar Oak White Pine Hemlock

Contribution Margin$/$unit

Machine Hours per Unit

CM per Machine Hour

Based on these calculations, put the beam types in priority order in accordance with profitability.

$1$

$2$

$3$

$4$

$5$

With Machine Hours as the constrained resource, fill out the chart below:

Product Douglas Fir Cedar Oak White Pine Hemlock

Demand

Machine Hours per unit

Total Machine Hours

Using the two prior charts above to make the calculations for remaining hours:

Machine Hours Available

Less: Priority $1$ Hours Demanded

Remaining Hours

Less: Priority $2$ Hours Demanded

Remaining Hours

Less: Priority $3$ Hours Demanded

Remaining Hours

Less: Priority $4$ Hours Demanded

Remaining Machine Hours

Fill out the chart below and use the final Remaining Hours above to calculate the units of the lowest priority product:

Product Douglas Fir Cedar Oak White Pine Hemlock Total

Units to Produce

Machine Hours per Unit

Total Machine Hours

CM$/$Unit

Total Contribution Margin

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