Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single...
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Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single machine. The machine has a monthly capacity of 500 hours. Total market demand for the two products is limited to 160 units (each) monthly. Slavin is currently producing 110 Alphas and 110 Deltas each month. Cost and machine-usage data for the two products are shown in the following table, which Slavin managers use for planning purposes: P Flag question Alpha Delta Total $ 123 150 Less variable costs per unit 17.5 23.5 16 32.5 35.5 19 Overhead $ 66 $ 63 Fixed costs Manufacturing Marketing and administrative $7,500 $4,500 $12,000 2.0 2.5 Machine hours per unit Machine hours used Machine hours available Quantity produced 495 500 110 160 $ 2,190 110 160 tion 19
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