Rosie’s Company has three products, P1, P2, and P3. The maximum Rosie’s can sell is 72,000 units of P1, 45,000 units of P2, and 33,000 units of P3. Rosie’s has limited production capacity of 30,000 hours. It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie’s Company? Multiple Choice 138,000 P1, 45,000 P2, 33,000 P3. 29,700 P1, 45,000 P2, 138,000 P3. 138,000 P1, 41,000 P2, 138,000 P3. 31,500 P1, 41,000 P2, 33,000 P3. 29,700 P1, 46,000 P2, 29,700 P3
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Rosie’s Company has three products, P1, P2, and P3. The maximum Rosie’s can sell is 72,000 units of P1, 45,000 units of P2, and 33,000 units of P3. Rosie’s has limited production capacity of 30,000 hours. It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie’s Company?
Multiple Choice
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138,000 P1, 45,000 P2, 33,000 P3.
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29,700 P1, 45,000 P2, 138,000 P3.
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138,000 P1, 41,000 P2, 138,000 P3.
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31,500 P1, 41,000 P2, 33,000 P3.
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29,700 P1, 46,000 P2, 29,700 P3.
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