Johnson Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows.Carpet Kleen Floor DeodorizerUnits produced and sold 5,000 4,000Machine hours used 5,000 2,000Sales price per unit P7 P10Variable cost per unit P4 P8Fixed 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. 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 DeodorizerA. 0 units 0 units B. 0 units 20,000 units C. 5,000 units 10,000 units D. 8,000 units 4,000 units
Johnson Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows.Carpet Kleen Floor DeodorizerUnits produced and sold 5,000 4,000Machine hours used 5,000 2,000Sales price per unit P7 P10Variable cost per unit P4 P8Fixed 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. 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 DeodorizerA. 0 units 0 units B. 0 units 20,000 units C. 5,000 units 10,000 units D. 8,000 units 4,000 units
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Johnson Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows.Carpet Kleen Floor DeodorizerUnits produced and sold 5,000 4,000Machine hours used 5,000 2,000Sales price per unit P7 P10Variable cost per unit P4 P8Fixed 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.
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 DeodorizerA. 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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