Dear Friends,
can you please help me in solving this Throughput Margin question?
Regards
A manufacturer produces a single product that sells for $150 per unit. The product is processed through the Cutting and Finishing Departments. Additional data for these departments are as follows:
|
Cutting
|
Finishing
|
|
|
|
Annual capacity (36,000 direct labor hours available in each department)
|
180,000 units
|
135,000 units
|
Current production rate (annualized)
|
108,000 units
|
108,000 units
|
Fixed manufacturing overhead
|
$1,296,000
|
$1,944,000
|
Fixed selling and administrative expense
|
864,000
|
1,296,000
|
Direct materials cost per unit
|
45
|
15
|
The current production rate is the budgeted rate for the entire year. Direct labor employees earn $20 per hour, and the company has a "no layoff" period in effect. What is the amount of the throughput contribution per unit as computed using the theory of constraints?------------------------------
TIMUCIN ONER
Director/Manager
ANTALYA
Turkey
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