One Two Three Estimated customer demand in units 700 600 800 Selling price per unit Variable cost per unit Machine-hours per unit $ 80 $ 35 $ 65 $ 26 $ 45 $ 20 2$ 2.5 3.0 1.25 The company has only 1,200 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Cholce $25,600 $24,600 $26,600 $23,600

One Two Three Estimated customer demand in units 700 600 800 Selling price per unit Variable cost per unit Machine-hours per unit $ 80 $ 35 $ 65 $ 26 $ 45 $ 20 2$ 2.5 3.0 1.25 The company has only 1,200 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Cholce $25,600 $24,600 $26,600 $23,600

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 47P: (Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30...

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(Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30 minutes per unit. The budgeted conversion costs for the manufacturing cell are 2,700,000 per year. The total labor minutes available are 600,000. During the year, the cell was able to produce 1.5 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per unit (the amount of conversion cost actually assigned to the product). 3. CONCEPTUAL CONNECTION Discuss how this approach to assigning conversion costs can improve delivery time performance.
(e) Product Blue Product Red £ £Selling £12.00 £24.00Variable cost £ 4.00 £ 8.00Contribution margin £ 8.00 £16.00Fixed costs apportioned £200,000 £400,000Budgeted Sales Units 140,000 60,000Required:Calculate the breakeven points, for each product and the company as a wholeand comment on your findings
A division sold 260000 calculators during 2020: Sales $2600000 Variable costs: Materials $494000 Order processing 195000 Billing labor 143000 Selling expenses 78000 Total variable costs 910000 Fixed costs 1000000 How much is the unit contribution margin? $1.00 $3.50 $7.35 $6.50
A firm makes two products, Alpha and Beta. Alpha Beta Sales price per unit $7.00 $10.00 Variable cost per unit $4.00 $8.00 Demand 5,000 4,000 Machine hours used 5 2 The total available machine hours is 10,000. How many of Alpha should be in the product mix to maximize the profit?
FRANCORP sells two products. Products M N Selling price per unit $80 $60 Less variable expenses per unit $46 $40 Contribution margin per unit $34 $20 Current demand per week (units) 2,100 2,400 Processing time required on machine XYZ per unit 2 min. 1 min. Machine XYZ is a constrained resource and is being used at 100% capacity. Machine XYZ has a capacity of 3,000 minutes per week. Which product should FRANCORP focus on? a. Product N since it provides a contribution margin net benefit of $3 per minute b. Product N since it provides a contribution margin net benefit of $3.50 per minute c. Product M since it provides a contribution margin net benefit of $2.20 per minute d. Product M since it provides less contribution margin per minute
Per unit Total Volume Sales $40.00 608000 Variable cost 28 425600 Contribiton margin 12 182400 Fixed expense 156000 Net operating 12 26400 Please share the work(sales and variable expense) from the last answer to achieve $51600 in targeted profit ?
Question content area top Part 1 Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a onetimeonly special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $120 Direct labor 100 Manufacturing support 115 Marketing costs 85 Fixed costs: Manufacturing support 155 Marketing costs 55 Total costs 630 Markup (40%) 252 Targeted selling price $882 What is the full cost of the product per unit? A. $420 B. $252 C. $882 D. $630
Costner produces two product lines. Prices/costs per unit follow. "W" "H" Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable overhead $12 $8 Demand for "W" is 209 units and "H"is 341 units Costner has only 175 labor hours available Given the constrained resource, what is the maximum contribution margin the company can attain if it uses the optimal sales mix? Round only your final answer to the nearest dollar. Hint: Consider the financial result if the company follows your recommendations on which line to produce first and how many they would be able to produce of the other product.
Question No. 4: Production under Constrained Resources Glover Company makes three products in a single facility. These products have the following unit product costs:ProductABCDirect materials$35.10$51.60$58.00Direct labor22.5025.1015.90Variable manufacturing overhead2.301.701.60Fixed manufacturing overhead12.207.808.40Unit product cost$72.10$86.20$83.90Additional data concerning these products are listed below.ProductABCMixing minutes per unit1.300.800.20Selling price per unit$81.00$103.40$96.90Variable selling cost per unit$2.90$3.40$3.20Monthly demand in units310044002400The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes are available per month on these machines. Direct labor is a variable cost in this company.Required : a. How many minutes of mixing machine time be required to satisfy demand for all three products?b. How much of each product should be produced to maximize net operating income?ABCOptimal productionc. Up to how much…
FRANCORP sells two products. Products M N Selling price per unit $80 $60 Less variable expenses per unit $46 $40 Contribution margin per unit $34 $20 Current demand per week (units) 2,100 2,400 Processing time required on machine XYZ per unit 2 min. 1 min. Machine XYZ is a constrained resource and is being used at 100% capacity. Machine XYZ has a capacity of 3,000 minutes per week. Assuming FRANCORP wants to maximize its total contribution margin, how much of each product should it produce? a. 2400 units of N and 300 units of M b. 300 units of N and 2100 units of M c. 1200 units of N and 1050 units of M d. 2400 units of N and 0 units of M
Hi , I need answers for questions E-H. Thank you so much for your time. EB5. 2.2 Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: Average Cost per Unit DM 10 DL 9 Indirect Materials 3 Fixed MOH 6 Variable MOH 2 Fixed S&A Expense 8 Variable Sales Commission 14 A. If 15,000 units are produced, what is the variable cost per unit? 38 B. If 28,000 units are produced, what is the variable cost per unit? 38 C. If 21,000 units are produced, what are the total variable costs? $798,000 D. If 29,000 units are produced, what are the total variable costs? $1,102,000 E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the…
Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $100,000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $200,000, how many units must be sold to earn income of $100,000? Group of answer choices 150,000 units 100,000 units 37,500 units 1,500,000 units