Managerial Report for Better Fitness Essays

Submitted By Steve-Marquez
Words: 693
Pages: 3

Managerial Report for Better Fitness
Rio Salado Community College
Steve Marquez

Managerial report for Better Fitness’ BodyPlus 100 and 200 explains what is the optimal and maximum profit for selling the two versions of the
Body Plus. Finding the constraints and the maximum profit. To include finding profit if a mandatory production of twenty-five percent of the
BodyPlus 200 was applied. The first procedure to finding max profit is to know the boundaries of production. In the case of the BodyPlus 100 and 200 the total hours of production vary. The BodyPlus 100 took fifteen hours while the BodyPlus took twenty-four hours to produce one unit. After breaking the production time down by job, finding out the cost of labor is next, which was given. After finding the total cost of labor and manufacturing finding how many units can be made in the allotted time is next. The BodyPlus 100 can be produced seventy-nine times within the allotted time if the BodyPlus 200 is not produced at all. The BodyPlus 200 can be produced fifty times if the Body Plus 100 is not produced. Finding the most profit-yielding ratio using both units is the next step. The ratio in the case of the BodyPlus that yields the most profit using both units is fifty-nine units of BodyPlus 100 and twelve units of the BodyPlus 200. This ratio provides $27,421 dollars, which is also the max profit using twenty-five percent of production towards the BodyPlus 200. Finding the optimal ratio that uses both units and provides a max profit will not only provide the profit but will keep the business running for years to come. It is important to find the happy median that utilizes both units so the consumer haves access to different options. Having multiple options keeps the business competitive against other manufacturers.

Break down of the BodyPlus 100 per unit

Unit
Machine/Welding Time
Painting/Finishing Time
Assembly/Testing Time
Material Cost
Packaging Cost

Frame
4 hours
2 hours

$450

Press
2 hours
1 hour

$300

Pec-Dec
2 hours
2 hours

$250

Total
8 hours
5 hours
2 hours
$1,000
$50

Break down of the BodyPlus 200 per unit

Unit
Machine/Welding Time
Painting/Finishing Time
Assembly/Testing Time
Material Cost
Packaging Cost

Frame
5 hours
4 hours

$650

Press
3 hours
2 hours

$400

Pec-Dec
2 hours
2 hours

$250

Leg-Press
2 hours
2 hours

$200

Total
12 hours
10 hours
2 hours
$1,500
$75

Alotted Time for labor

Machine/Welding Time
Painting/Finishing Time
Assembly/Testing Time
Total

600
450
140
1190

Labor Cost per hour

Machine/Welding Time
Painting/Finishing Time
Assembly/Testing Time

$20.00
$15.00
$12.00

BodyPlus 100 Total Manufacturing Cost

Machine/Welding Time
Painting/Finishing Time