Page 48 - P1 Integrated Workbook STUDENT 2018

Chapter 3

Solution
Standard Ultra
Selling price per unit $80 $120
Material costs per unit $20 $24
Throughput $60 $96
Throughput per hour at bottleneck $60 $48
Production rank 1 2

Production plan:
Units Hours per Bottleneck Throughput
unit hours used $
Standard 40,000 1 40,000 2,400,000
Ultra 5,000 2 10,000 240,000
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2,640,000
Factory costs 2,000,000
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Gross profit 640,000
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Illustrations and further practice

Now try examples 2 and 3 from Chapter 3.

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