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Accounting: Throughput accounting.

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Marshall, Inc., produces three products but weekly demand for the three products exceed the available amount of machine time. Following is information about each product:
A B C

Contribution margin per unit $300 $400 $150
Machine hours per unit 3 2 0.50
Weekly demand (units) 100 300 800

(a.) Determine how many units each of Product A, Product B, and Product C that Marshall, Inc., should produce each week assuming 1,000 hours of available machine time.

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Solution Summary

The problem deals with determining the production schedule, of a product, by using throughput accounting techniques.

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THE PRODUCT MIX DECISION

Marshall, Inc. produces three products but weekly demand for the three products exceeds the available amount of machine time. Following is information about each product:
A B C
Contribution margin per unit $300 $400 $150
Machine hours per unit 3 2 0.5
Weekly demand ...

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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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