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Acctg321 Strategic Management Accounting Assessment Answer

Question 1:
Charles, the production manager, has asked you to evaluate the feasibility of extending furniture production to meet anticipated demand. Using the data in Tables 1 and 3, assess the capacity of the furniture production value stream to meet current demand.
Required
a) Determine the order and quantity of products the furniture value stream should produce to maximize profit. Present your calculations in separate tables, showing:
i) the capacity (minutes) available for each step of the furniture production process and capacity required (minutes) to meet the monthly demand for tables and benches.
ii) the contribution of each product and the contribution per constraining factor in dollars per unit.
b) Identify factors, other than contribution per constraining factor, that JUCY should consider before determining the quantities of furniture items to be produced and discuss how they could influence the final product mix.




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