Stress-test price and capacity
See this course’s project requirements
A two-product costing and constrained-capacity model with contribution, overhead, bottleneck minutes and a demand-limited production recommendation.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- A cost-classification and unit-cost schedule.
- A contribution schedule and two-product profit bridge.
- An overhead-rate and applied-versus-actual reconciliation.
- A capacity feasibility and contribution-per-minute table.
- A checked feasible product mix with an explicit tie and resource ledger.
- A price/capacity sensitivity and conditional product-mix recommendation.
Review and revise
Use these criteria to check your work and choose what to improve.
- Costs: behavior, units and overhead assignment are explicit.
- Feasibility: time/demand/whole-unit constraints hold.
- Objective: contribution and fixed-pool profit reconcile.
- Decision: ties and changed-price/capacity scenarios are checked.
Want more background?
The idea in everyday life
Original fictional practice. All money is USD. No account, payment, personal record or outside participation is required. Fictional workshop sells whole units only. Product A: price 30, variable material 12, variable labor 6, bottleneck 6 min, demand cap 50. Product B: price 24, material 8, labor 4, bottleneck 4 min, demand cap 80. Available bottleneck time 600 min. Monthly fixed manufacturing overhead 600, budget activity 600 min (rate 1/min). All produced units sell within demand limits; no inventory, other constraints or taxes in this bounded model.
A changed economic coefficient can alter both ranking and optimum.
Stress-test price and capacity — complete worked case
A changed economic coefficient can alter both ranking and optimum.
Fictional workshop sells whole units only. Product A: price 30, variable material 12, variable labor 6, bottleneck 6 min, demand cap 50. Product B: price 24, material 8, labor 4, bottleneck 4 min, demand cap 80. Available bottleneck time 600 min. Monthly fixed manufacturing overhead 600, budget activity 600 min (rate 1/min). All produced units sell within demand limits; no inventory, other constraints or taxes in this bounded model.
Two products
Paste at A1.
| AProduct | BPrice | CMaterial | DVariable labor | EMachine min | FMax demand |
|---|---|---|---|---|---|
| A | 30 | 12 | 6 | 6 | 50 |
| B | 24 | 8 | 4 | 4 | 80 |
Copy as plain text
1. 6.1 Stress-test
Retain the original mix and define separate price and capacity scenarios.
You should see: The baseline remains 80 B/46 A or another tied maximum.
2. 6.2 Stress-test
Set B price 20, recompute contribution 8 and minutes return 2, then test the revised whole-unit grid.
You should see: 50 A/75 B maximizes 1,200 contribution in this revised case.
3. 6.3 Stress-test
Restore original price and raise capacity 660; apply both demand caps.
You should see: 50 A/80 B uses 620 and profits 960.
4. 6.4 Stress-test
Write a recommendation naming price/capacity assumptions, tied alternatives and unused capacity without assuming extra buyers.
You should see: The final mix file is demand-limited and reproducible.
What to finish
A price/capacity sensitivity and conditional product-mix recommendation.
Watch for this
Keeping the old ranking after price changes or treating spare capacity as guaranteed sales.
How can I tell I understand it?
Verify that your completed price/capacity sensitivity and conditional product-mix recommendation meets the three lesson-specific checks and retains the supporting original records.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Sources and further reading
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Source & access notes · checked 2026-10-01
Read unit contribution per scarce resource. This course adds its own whole-unit demand limits and exhaustive small-case comparison.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
Source & access notes · checked 2026-10-01
Read cost behavior and unit/total contribution formulas. Original two-product case replaces all published examples.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
Source & access notes · checked 2026-10-01
Read estimated pool/activity rate and application versus actual overhead; no source activities copied.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
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