Deluxe Premium Selling price per unit. $70 $90 Variable costs per unit . $40 $50 Processing time per unit 1 hour 2 hours Required 1. Assume the markets for both types of cleaners are unlimited. How many Deluxe cleaners and how many Premium cleaners should the company make each month? Explain. How much total contribution margin does this mix produce each month? 2. Assume the market for the Deluxe model is limited to 60 per month, with no market limit for the Premium model. How many Deluxe cleaners and how many Premium cleaners should the company make each month? Explain. How much total contribution margin does this mix produce each month?

Deluxe Premium Selling price per unit. $70 $90 Variable costs per unit . $40 $50 Processing time per unit 1 hour 2 hours Required 1. Assume the markets for both types of cleaners are unlimited. How many Deluxe cleaners and how many Premium cleaners should the company make each month? Explain. How much total contribution margin does this mix produce each month? 2. Assume the market for the Deluxe model is limited to 60 per month, with no market limit for the Premium model. How many Deluxe cleaners and how many Premium cleaners should the company make each month? Explain. How much total contribution margin does this mix produce each month?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5MC: A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the...

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A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110
III. NadasellsorangejuiceforOMR1.00pergallon.ThevariablecostperunitisOMR0.80,andthefixed costs per month are OMR 1,000. You are required to;A) Calculate the total costs if Nada produces 10,000 units? B)Calculate the total profit earned by Nada if they produce and sell 10,000 units?
fixed cost=650000.00 variable cost per procedure=20 procedures per year =12500 what is the underlying cost structure? what is the expected total cost?
Selling price per unit $ 100Variable expenses per unit $ 40Fixed expenses per month $ 60,000 The break-even point volume of units is: a. 0 b. 360 c. 720 d. 1000
fixed cost=650000.00 variable cost per procedure=20 total procedures for the year=12500 what is the total variable cost?
Selling price per unit $ 100Variable expenses per unit $ 40Fixed expenses per month $ 60,000 The contribution margin ratio is: a. 40% b. 60% c. 62.5% d. 70%
Consider the following: Fixed expenses P78,000; Unit contribution margin 12;Target net profit 42,000. How many unit sales are required to earn the target net profit? A. 15,000 unitsB. 10,000 unitsC. 12,800 unitsD. 20,000 units
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 5. Labor Rate variance: 6. Total Direct labor spending variance: 7. Variable overhead efficiency variance:8. Variable overhead rate variance
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 4. Labor efficiency variance: 5. Labor Rate variance: 6. Total Direct labor spending variance: 7. Variable overhead efficiency variance:8. Variable overhead rate variance
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 2. Material price variance :3. Total Material spending variance: 4. Labor efficiency variance: 5. Labor Rate variance:
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 7. Variable overhead efficiency variance:8. Variable overhead rate variance:9. Total variable overhead:10. Total fixed overhead spending variance:
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 3. Total Material spending variance:4. Labor efficiency variance: 5. Labor Rate variance:6. Total Direct labor spending variance: