Answer the following questions using the information below: Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z Selling price $50 $60 $70 Direct materials 6 6 6 Direct labor ($12 per hour) 12 12 24 Variable support costs ($4 per machine-hour) 4 88 Fixed support costs 10 10 10 If there is a machine breakdown, which model is the most profitable to produce? Model X Model Y Model Z Models Y and Z
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- Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
- Paul's Pumps manufactures three different product lines: Model A, Model B, and Model C. Plenty of market demand exists for all models.The table below reports the prices and costs per unit of each product. Model A Model B Model C Selling price $50 $60 $70 Direct materials costs $6 $6 $ 6 Direct labor costs ($12 per labor hour) $12 $12 $24 Variable support costs ($4 per machine hour) $4 $8 $8 Fixed support costs $10 $10 $10 Assuming that machine hours are limited (i.e., this is the constrained resource), which model is the most profitable to produce? Select one: a. Model B X b. Model A and B would be equally profitable c. Model A d. Model CDynondo's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y $56 $69 6 6 13 4 15 00 Selling price Direct materials Direct labor ($13 per hour) Variable support costs ($4 per machine-hour) Fixed support costs 13 8 15 Model Z $71 6 26 8 15 Which model has the greatest contribution margin per unit? Model X Model Y Model Z Both Model X and Model Y have the highest and same contribution margin per unitBraun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Selling price direct materials cost per unit direct labor ($12/labor hour) variable support costs ($4/ machine hour) fixed support costs ($10/machine hour) Model X $57 $11 1 labor hour required $12 per unit 1 machine hour required $4 per unit 1 machine hour required $10 per unit Model Y $60 $6 1 labor hour required $12 per unit 2 machines hour required $8 per unit 2 machine hours required $20 per unit Model Z $70 $9 2 labor hours required $24 per unit 2 machines hour required $8 per unit 2 machine hours required $20 per unit What is the contribution margin per machine hour of the product that should be produced when there is a limited number of machine hours available?
- Joe's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: M.X M.Y M.Z Selling price $50 $60 $70 Direct materials $6 $6 $6 Direct labor ($12 per hour) $12 $12 $24 Variable support costs ($4 per machine-hour) $4 $8 $8 Fixed support costs $10 $10 $10 Which model has the greatest contribution margin per unit?All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product: Model A Model B Model C Selling price $22 $30 $35 Direct materials costs $2 $5 $8 Direct labor costs ($15 per labor hour) $15 $10 $14 Variable support costs ($3 per machine hour) $3 $8 $6 Fixed support costs $100 $100 $100 Assuming that the company is constrained on machine hours, and all units produced can be sold, then which model is the most profitable? Group of answer choices Model B Model C Model A Model B and C are equally profitable.The following costs are for Optical View Incorporated, a contact lens manufacturer: Output in Units Fixed Costs Variable Costs Total Costs 250 $ 4,750 $ 7,500 $ 12,250 300 4,750 9,000 13,750 350 4,750 10,500 15,250 400 4,750 12,000 16,750 For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost. (Round your answers to the nearest whole dollar amount.)
- All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product: Model A Model B Model C Selling price $ ? $50 $55 Direct materials costs $5 $5 $5 Direct labor costs ($15 per labor hour) $15 $15 $30 Variable support costs ($3 per machine hour) $3 $6 $9 Fixed support costs $10 $10 $10 Assuming that machine hours are limited (i.e., this is the constrained resource), at what price does Model A become the most profitable model to produce?All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product: Selling price Direct materials cost Direct labor costs ($15 per labor hour) Variable support costs ($4 per machine hour) Fixed support costs Select one: O a. Any price above $42 O b. Any price above $56 O c. Any price above $66 d. None of these options are correct. e. Any price above $28 Model A Model B Model C $? $66 $60 $6 $6 $18 $36 $8 $12 $12 $12 Assuming that machine hours are limited (i.e., this is the constrained resource), at what price does Model A become the most profitable model to produce? O O $6 $18 $4 $12Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts: Direct Labor- Hours per unit 0.40 0.60 Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $18 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Annual Production 26,000 units 88,000 units Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours. Estimated Overhead Cost $28,160 $ 164,560 $ 780,000 Estimated Activity Rims 110 2,000 10,400 Posts 90 0 52,800 Total 200 2,000 63,200 2. Determine the unit product cost of each product…