Southern Production Company has 100 labor-hours available. There is no limit on machine-hours. Southern can sell all of B it wants, but it can only sell 45 units and 20units of A and C, respectivelyContribution margin perunitLabor-hours per unitMachine-hours per unitProductA$152.55Product B$102.53.5ProductC$12211 a) What is the contribution margin per labor-hour for Product A?b) What is the contribution margin per labor-hour for Product B?c) What is the contribution margin per labor-hour for Product C?d) How many units of Product A should the company make?e) How many units of Product B should the company make? f) How many units of Product C should the company make?

Direct cost- The cost is directly related to the production of the goods or services traced from the…

Answered: Southern Production Company has 100…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Green Co. incurs a cost of $15 per pound to produce Product X, which it sells for $26 per pound. The company can further process Product X to produce Product Y. Product Y would sell for $30 per pound and would require an additional cost of $10 per pound to be produced. The differential revenue of producing Product Y is _____. a.$4 per pound b.$5 per pound c.$26 per pound d.$30 per pound
ABC Company has limited number of machine hours that it can use for manufacturing two products, A and B. each product has a selling price of P160 per unit but product A has 40% contribution margin and Product B has 70% contribution margin. One unit of B takes twice as many machine hours to make as a unit of A. assume either product can be sold in whatever quantity produced, which product(s) should the limited number of machine hours be used for? Product A Product B Both Products A and B Either Product A or Product B Group of answer choices 1 2 3 4
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Zang Co. has the option to either further process product Alpha to produce Product Zeta. The selling price of product Alpha is $36 per unit and it costs $23 to produce each unit of product Alpha. Product Zeta would be sold for $55 and would require an additional $25 cost for production. What is the differential cost to produce product Zeta? a. $25 per unit b. $20 per unit unit с. $23 per d. $2 per unit
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Concord Corporation’s contribution margin is $22.50 per unit for Product A and $35 for Product B. Product A requires 2 machine hours and Product B requires 4 machine hours. How much is the contribution margin per unit of limited resource for each product? A B $25.00 $7.50 $11.25 $8.75 $25.00 $8.75 $11.25 $7.50
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