In our product-mix example discussed in class (Week 6), how can it maximize profit if a minimum demand of 100 pounds for each drug also must be met?Partial structure is given as below.Pounds made1001001001001020100AvailableProduct1234564500 Labor65432.51.51600 Raw Material3.22.61.50.80.70.3Unit price12.51163Variable cost6.55.73.62.82.21.2Demand960928104197710841055Unit profit cont.ProfitAvailableLabor Used<=Raw Material Used<=

Profit maximization is the act of strategy of the company to produce the products at that level at…

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how can it maximize profit if a minimum demand of 100 pounds for each drug also must be met?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.17E: Variable cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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Variable cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. a.Determine the variable costs and the cost amount per unit for the production and sale of 200,000 units of medical tablets. b.Determine the variable cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. A. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones. B. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. C. Determine the selling price of cellular phones. (Round markup to the nearest dollar.)
Open MFG2 and click the Chart sheet tab. The management of Twisp is convinced that the quality of its products is highly dependent on their relative labor costs. Experience has shown that direct labor should account for at least 45% of the total product cost. According to the pie chart that appears on the screen, Twisp did not achieve this goal in 2011. How much should Twisp have spent on direct labor to reach its 45% goal? To find out, try different values for direct labor (cell C8), clicking the Chart sheet tab after each attempt. When you find a direct labor level that increases the direct labor percentage to 45%, enter the answer in the space provided: In 2011, direct labor needed to be ________________. Open MFG3 and click the Chart sheet tab. Did Twisp achieve its 45% goal in 2012? If not, answer the following: In 2012, direct labor needed to be ________________. When the assignment is complete, close the files without saving them again. Worksheet. The MFG2 worksheet presents the companys manufacturing activities for 2011. The company also had the following selling and general activities in 2011: sales of 13,503,000, selling expenses of 2,400,000, and general expenses of 1,200,000. Modify the worksheet to include this information in the Data Section and change the Answer Section so that it is in the form of an income statement. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as MFGT. Hint: Expand the Data Section to include these additional input items alphabetically. Insert a row for sales under the heading in the Answer Section. Add the rest of the income statement information to the bottom of the schedule. You will need to enter formulas for gross profit, all the expenses, and net income. You will also need to change the statement name. Chart. Using the MFG2 file, prepare a single 3-D bar chart to show the dollar amount of materials, labor, and overhead incurred by Twisp in 2011 and 2012. Complete the Chart Data Table and use it as a basis for preparing the chart. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as MFG2. Print the chart.
A new product is being designed by an engineering team at Golem Security. Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a target costing methodology. An analysis of similar products on the market suggests a price of $132.00 per unit. The company requires a profit of 0.20 of selling price. How much is the target cost per unit? Round to two decimal places.
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Using the chart, I need assistance in answering the following questions w/ explanations: (The cost of the bags, which must be ordered in batches of 100) a) If this was a profit-making activity, at the entry fee of $20, what would be the profit-maximizing quantity of participants/bags? (I got 300 participants/bags) b) Use the information in the table to determine the exact breakeven quantity of participants/bags for the entry fee of $20. Use the formula Qb = F/(P – AVC). (I am not sure what to do or if I did this right. I got 113.)
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Question:1 Fake Fur Company manufactures ecologically friendly fabric. Its primary customers are retailers. The estimated cost to make a meter of fabric is: Direct materials - $1.50 Direct labour - $0.70 Variable overhead - $2.05 Fixed overhead - $3.50 Total = $7.75 Variable selling costs per unit - $2.00 Fixed administration charges - $12,500 If Fake Fur Company prices its product using a mark-up of 150% of its variable production costs, what would the unit selling price be? Question:2 Your company wants to expand and it will cost $100,00. Your current sales are $1 million and your sales growth is 12%. If you expect no increase in expenses, can you expand next year? a) No, your increase in sales will not cover the expense. b) No, your expansion costs will go up. c) Yes, your increase in sales will cover the expense. d) Yes, your expansion costs will go down.
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A company uses activity-based pricing. The pricing structure is to charge customers the direct cost of the product they order with a markup of 30% on direct costs plus the cost of the provided services. The service costs are $8.00 per order, $12.00 for each product ordered, and $2.00 per pound for shipping. Ozuma Industries makes 10 orders for goods with a direct cost of $10,000. They order 80 different products that weigh a total of 1,800 lbs. What is the total price paid by Ozuma?
The following information applies to the products of Stuart Company. Product A Product B Selling price per unit $ 14 $ 12 Variable cost per unit 11 8 Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately.Required One unit of Product A requires 1 hour of labor to produce, and one unit of Product B requires 4 hours of labor to produce. Due to labor constraints, demand is higher than the company’s capacity to make both products. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 13,000 units and 12,000 units, respectively. The maximum number of machine hours available is 41,000. Product A uses 3 machine hours, and Product B uses 5 machine hours. The company can sell all the…