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Sammamish Brick, Inc., manufactures bricks using clay deposits on the company's property. Raw clays are blended and then extruded into molds to form unfired bricks. The unfired bricks are then stacked onto movable metal platforms and rolled into the kiln where they are fired until dry. The dried bricks are then packaged and shipped to retail outlets and contractors. The bottleneck in the production process is the kiln, which is available for 2,300 hours per year. Data concerning the company's four main products appear below. Products are sold by the pallet. Traditional Brick Gross revenue per pallet Contribution margin per pallet Annual demand (pallets) Hours required in the kiln per pallet $769 $480 80 10 Textured Facing $1,352 $ 630 100 10 Cinder Block $608 $388 90 4 Roman Brick $886 $455 140 5 2b. What is the production plan for the year that would maximize the company's profit? (Round answer to the nearest complete pallet (i.e., 12.3 pallets should be entered as 12.) pallets pallets pallets pallets 3. What would be the total contribution margin for the production plan you have proposed? Traditional Textured Roman Cinder Block Brick Facing Brick Total 4. The kiln could be operated for more than 2,300 hours per year by running it after normal working hours. Up to how much per hour should the company be willing to pay in overtime wages, energy costs, and other incremental costs to operate the kiln additional hours? Maximum amount to operate the kiln per hour 5. The company is considering introducing a new product, glazed Venetian bricks, whose variable cost would be $835 per pallet and that would require 10 hours in the kiln per pallet. What is the minimum acceptable selling price for this new product? Time required (hours) Selling price 2

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