Taylor furniture produces and sells three kinds of speciality

Taylor Furniture produces and sells three kinds of speciality mattresses; Nealy, Tersa and Pelta. Production is a machine-intensive process. Taylor’s variable costs are direct material costs, variable machining costs, and sales commissions. Marion Taylor, the owner, is planning production for the coming year and collects the following data.


                                                                        NEALY           TERSA           PELTA


Estimated Demand                                          1,800 units      4,500 units      39,000 units


Selling Price per unit                                       $3,000             $2,100             $800


Direct material cost per unit                           $750                $500                $100


Variable machining cost per unit                     $600                $500                $200


Sales commission on each unit sold                5%                   5%                   10%


Fixed manufacturing Costs per unit                $50                  $70                  $12


Fixed Marketing Costs per unit                      $15                  $40                  $18


Total fixed administration costs amount to $3,750,000.


Annual capacity is 50,000 machine hours which is limited by the availability of machines.


Variable machining costs are $200 per hour.


The production manager has indicated to Marion Taylor that it is not possible to meet the total demand for the three types of mattresses with the available machine hours. Marion has asked you to decide on the product mix for the next year to maximise the profits from the available machine hours.




A.  Out of the above given data which Marion has collected, list the information which is NOT relevant to deciding the product mix to maximise the contribution to company profits (15 marks).


B.  Using the relevant information given above, calculate the optimum product mix that would maximise the contribution to company profits (50 marks). Estimate the contribution to profits that would result under the product mix that you calculated (15 marks).


C.Suppose the company can lease additional machining capacity on an as-needed basis. What is the maximum amount that Marion would be willing to pay for each hour of additional machining capacity in the coming year (20 marks)?

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Paper Helper has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!


Essay Writing Services

At Paper Helper, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.


Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!


Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.


Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.


College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!


Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.