8 - 11 Joan Company makes four products in a single facility. Data concerning these products appear below: Product A B C D Selling price per unit P28.20 P26.60 P20.40 P24.70 Variable manufacturing cost per unit P11.40 P 7.70 P 6.30 P 9.30 Variable selling cost per unit P 3.40 P 1.50 P 3.50 P 1.80 Milling machine minutes per unit 2.60 1.40 0.70 0.90 Monthly demand in units 1,000 3,000 4,000 1,000 The milling machines are potentially the constraint in the production facility. A total of 10,400 minutes are available per month on these machines. 8. How many minutes of milling machine time would be required to satisfy demand for all four products? A) 9,000 B) 10,500 C) 10,400 D) 9,900 9. Which product makes the LEAST profitable use of the milling machines? A) Product A B) Product B C) Product C D) Product D 10. Which product makes the MOST profitable use of the milling machines? A) Product A B) Product B C) Product C D) Product D 11. Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.) A) P 10.60 B) P0.00 C) P 5.15 D) P 17.40 12 - 13 Johnson Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows. Carpet Kleen Floor Deodorizer Units produced and sold 5,000 4,000 Machine hours used 5,000 2,000 Sales price per unit P7 P10 Variable cost per unit P4 P8 Fixed costs of P20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same. 12. The contribution margin per machine hour for Floor Deodorizer is: A. P0.25. B. P2.00. C. P4.00. D. P5.00. 13. Assuming there is unlimited demand for both products and Johnson has 10,000 machine hours available, how many units of each product should be produced and sold? Carpet Kleen Floor Deodorizer A. 0 units 0 units B. 0 units 20,000 units C. 5,000 units 10,000 units D. 8,000 units 4,000 units
8 - 11 Joan Company makes four products in a single facility. Data concerning these products appear below:
Product
A B C D
Selling price per unit P28.20 P26.60 P20.40 P24.70
Variable
Variable selling cost per unit P 3.40 P 1.50 P 3.50 P 1.80
Milling machine minutes per unit 2.60 1.40 0.70 0.90
Monthly demand in units 1,000 3,000 4,000 1,000
The milling machines are potentially the constraint in the production facility. A total of 10,400 minutes are available per month on these machines.
8. How many minutes of milling machine time would be required to satisfy demand for all four products?
A) 9,000 B) 10,500 C) 10,400 D) 9,900
9. Which product makes the LEAST profitable use of the milling machines?
A) Product A B) Product B C) Product C D) Product D
10. Which product makes the MOST profitable use of the milling machines?
A) Product A B) Product B C) Product C D) Product D
11. Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.) A) P 10.60 B) P0.00 C) P 5.15 D) P 17.40
12 - 13 Johnson Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows.
Carpet Kleen Floor Deodorizer
Units produced and sold 5,000 4,000
Machine hours used 5,000 2,000
Sales price per unit P7 P10
Variable cost per unit P4 P8
Fixed costs of P20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same.
12. The contribution margin per machine hour for Floor Deodorizer is:
A. P0.25. B. P2.00. C. P4.00. D. P5.00.
13. Assuming there is unlimited demand for both products and Johnson has 10,000 machine hours available, how many units of each product should be produced and sold?
Carpet Kleen Floor Deodorizer
A. 0 units 0 units
B. 0 units 20,000 units
C. 5,000 units 10,000 units
D. 8,000 units 4,000 units
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