Punto 2: Practical Capacity
Punto 2: Practical Capacity
Punto 2: Practical Capacity
Practical Capacity
N° of
Resource Productive Hours
Employees/Machines
Punto 3
Valves Pumps
Production (Units) 7,500.00 12,500.00
Sales $ 592,500.00 $ 875,000.00
Direct Labor Cost $ 92,625.00 $ 203,125.00
Direct Material Cost $ 120,000.00 $ 250,000.00
Contribution Margin $ 379,875.00 $ 421,875.00
Manufacturing Overhead $ 126,500.00 $ 249,375.00
Machine Expenses $ 84,375.00 $ 140,625.00
Setup Labor $ 3,250.00 $ 19,500.00
Setup Machine $ 2,250.00 $ 13,500.00
Receiving and Production Control $ 750.00 $ 3,750.00
Engineering $ 4,875.00 $ 19,500.00
Package and Shipping $ 31,000.00 $ 52,500.00
Total Costs $ 339,125.00 $ 702,500.00
Gross Margin $ 253,375.00 $ 172,500.00
Gross Margin (%) 43% 20%
cal Capacity
Practical Capacity x Total Capacity (Hours x
Days x Month Month Employees)
20 120 14400
20 130 520
20 130 3640
20 120 960
20 240 14880