Genius Inc. sells three products that are made in the same location and using the...
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Accounting
Genius Inc. sells three products that are made in the same location and using the same equipment. Genius only has 5,000 hours available on the machines that are used. Fixed expenses are $250,000.
Product A Product B Product C
Contribution Margin $120 $200 $300
Machine Hours needed 2 5 6
Demand 1,000 600 300
Use the following information to answer questions 7-9 Genius Inc. sells three products that are made in the same location and using the same equipment. Genius only has 5,000 hours available on the machines that are used. Fixed expenses are $250,000 Product A Product B Contribution Margin $120 Machine Hours needed 2 Demand Product C $300 6 300 $200 1,000 600 7. Which product should be made first? 8. How many units of C should be made? a) 300 b) 240 c) 260 d) Cannot determine from information 9. What is the operating income assuming the maximum use of constraints is followed? a) $80,000 b) $8,000 c) $62,500 d) Some other number
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