Tanek industries manufactures and sells three different models of wet-dry shop vacuum cleaners. although the shop vacs vary in terms of quality and features, all are good sellers. tanek is currently operating at full capacity with limited machine time. sales and production information relevant to each model follows. economystandarddeluxe selling price$30$50$100 variable costs and expenses$14$15$46 machine hours required0.50.81.6 calculate contribution margin per unit. economy $: standard $: deluxe $: ignoring the machine time constraint, which single product should tanek industries produce? what is the contribution margin per unit of limited resource for each product? (round answers to 2 decimal places, e. g.10.50.) contribution margin per limited resources economy$: standard$: deluxe$: if additional machine time could be obtained, the additional time should be used to produce the product.

(1) 12; 35; 54

(2) 24; 43.75; 33.75

Explanation:

Contribution margin per unit.

Economy $:

= Selling price - Variable costs and expenses

= 30 - 14

= 12

Standard $:

= Selling price - Variable costs and expenses

= 50 - 15

= 35

Deluxe $:

= Selling price - Variable costs and expenses

= 100 - 46

= 54

Ignoring the machine time constraint, Tanek Industries should produce Delux

Contribution margin per limited resources:      

Economy$:

= contribution margin per unit ÷ Machine hours required

= 12 ÷ 0.5

= 24    

Standard$:

= contribution margin per unit ÷ Machine hours required

= 35 ÷ 0.8

= 43.75

Deluxe$:

= contribution margin per unit ÷ Machine hours required

= 54 ÷ 1.6

= 33.75

The company should produce standard since it has highest contribution margin per unit of limited resource.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

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