use for Ing two products, X and Y. Each product has a selling price of P160 per unit but product X has 40% contribution margin and product Y has a 70% contribution margin. One unit of Y takes twice as many machine hours to make as a unit of X. Assume either product can be sold in whatever quantity is produced. Which product or products should the limited number of machine hours be used for?
Q: A firm makes two products, Alpha and Beta. Alpha Beta Sales price per unit $7.00 $10.00…
A: Formulas:
Q: Roberto, Inc. manufactures products A and B. Both products have a contribution margin ratio of 40%.…
A: Here labor hours is constraint factor,so we should calculate contribution per labor minute and…
Q: The Superior Jumpdrive Company sells jump drives for $10 each. Manufacturing cost is $2.60 per jump…
A: “Hey, since there are multiple questions posted, we will answer first two questions. If you want any…
Q: NUBD has fixed cost of P200,000. It has two products that it can sell, X and Y. NUBD sells these…
A: Break Even Point = Fixed Cost/Weighted Contribution Margin Per unit
Q: Variable manufacturing costs are $125 per unit, and fixed manufacturing costs are $206,800. Sales…
A: Solution- A- Absorption costing operating…
Q: Joe's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable…
A: Contribution margin means the difference between sale price per unit and variable cost per unit.…
Q: XYZ Co. has the following sales mix for its three products: A, 35%; B, 45%; and C, 20%. Fixed costs…
A: Total Break even point = fixed costs / Contribution margin per unit = $400000/ $100 = 4000 units
Q: Ptarmigan Company produces two products. Product A has a contribution margin of $80.00 and requires…
A: Product A: Contribution margin per machine hour = Contribution margin / Number of hours Contribution…
Q: Letter Systems Inc. has a limited amount of direct material available for products 1A1 and 2B2. Each…
A: Contribution Margin can be define as the margin remains of sales revenue after deducting the…
Q: An industrial product can be manufactured by two different methods of production. Using Method X,…
A: Point of indifference is the level of production under which the cost of production under two…
Q: A company can sell any mix of Product A and Product B at full capacity. TH company has 100,000 hours…
A: Contribution Margin: The contribution margin is the excess of selling price over the variable costs…
Q: Mary Company makes three products (X, Y, Z) with the following characteristics: Selling price per…
A: solution given X Y Z Selling price per unit 10 15 20 Variable cost per…
Q: Product A has a contribution margin of P 10 per unit, a contribution margin ratio of 50%, and…
A: The contribution margin per hour is the amount of profit earned before considering the fixed…
Q: Consider the following production and cost data: Product Q Product P Product K Contrib margin…
A:
Q: A company produces two products, Gamma and Omega. Gamma sells for $10 per unit and Omega sells for…
A: Contribution means the amount of sales revenue which is left after deducting variable expenses. If…
Q: Green Co. incurs a cost of $15 per pound to produce Product X, which it sells for $26 per pound. The…
A: The differential analysis is performed to compare two different alternatives.
Q: Consider the following production and cost data for two products, L and C: Product L Product C…
A: Contribution Margin:-It is the selling per unit minus variable cost per unit known as "Contribution"…
Q: A company makes two products A and B, using a CNC milling machine which is classified as a single…
A: Working Note #1 Computation of effective capacity: Unit load of the mix= Product mix of product A *…
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Differential cost of producing a product means where product can be further processed and further…
Q: Yes Co. has the option to either further process product Y to produce Product Z. The selling price…
A: Differential cost: It is the difference in the cost of two different available alternatives. It is a…
Q: Dunford Company produces three products with the following costs and selling prices: Product Y…
A: To decide in which order the product should be produced, we will calculate contribution per unit of…
Q: Consider the following production and cost data for two products, Big and Little: Big Little…
A: Big Little Contribution margin per unit $24 $18 Divide by: Machine hours needed per unit 3 2…
Q: How much of product A should be produced?
A:
Q: a) all 4 products. Machines operate 10 hours a day, 300 days a year. Calculate how many of each type…
A: Decision regarding to select the machine when one more one machine is available means there are…
Q: Rubber and Steel Company is planning to manufacture a new product. The variable manufacturing costs…
A: a. Calculate the contribution margin per unit by deducting the sum of variable cost per unit which…
Q: Creative Cabinets projects an annual demand of 18,000 units for the maxistand. The maxistand will…
A: BEP is that point of sales at which total profit from the operations is zero BEP= Total Fixed cost/…
Q: Vaughn Manufacturing's contribution margin is $20 per unit for Product A and $35 for Product B.…
A: Formula to compute the contribution margin per unit of limited resources for each product.
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Formula : Differential revenue = Product D - product J
Q: Morris Industries manufactures and sells three products (AA, BB, and Sales Price Variable Cost…
A: The break even sales are the sales where business earns no profit no loss during the period. The…
Q: What is the breakeven point in unit, assuming a product's selling price is $100 fixed costs are…
A: Compute the CPU as follows:
Q: Provide answer in table format Gelb Company currently manufactures 44,000 units per year of a key…
A: Incremental cost is the cost incurred due to additional units produced in an organization. It is…
Q: Consider the following production and cost data for two products, L and C: Product L Product C…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL. Contribution margin per unit is…
A: Lets understand the basics. When entity have any scare resources then management always wants to use…
Q: A firm produces products X, Y and Z with contribution margins of $4, $5 and $10 respectively. The…
A: Workings: Given values: Machine hours available = 5000 Contribution margin for x = 4…
Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…
A: Solution.. Differential cost of producing Product C Cost of producing Product B = $28 Cost of…
Q: The total cost of producing w phone sets per day at Cutting Edge Electronics plant is $( ½ w2 + 70w…
A: Optimum production is that level of production at which profit will be maximum, it is given by MR =…
Q: A company can sell any mix of Product A and Product B at full capacity. The company has 100,000…
A: Key factor is the factor that limited in quantity and limits the production of the company.
Q: XYZ Co. has the following sales mix for its three products: A, 35%; B, 45%; and C, 20%. Fixed costs…
A: The question is based on the concept of break even point analysis for sale mix . The break even…
Q: One hundred pounds of raw material W is processed into 60 pounds of X and 40 pounds of Y. Joint…
A: Additional revenue = Revenue from sale of product Z - Revenue from sale of product Y = (30 pounds x…
Q: Jaffa Limited produces three products—X, Y, & Z—with the following characteristics: X X Y…
A: CALCULATION OF CONTRIBUTION PER HOUR CALCULATION PARTICULAR X Y Z A Selling…
Q: XYZ Co. has the following sales mix for its three products: A, 20%;B 35%; and C45%. Fixed costs…
A: Total break-even=Fixed costWeighted contribution=$400,000$100=4,000
Q: A company’s productive capacity is limited to 480,000 machine hours. Product X requires 10 machine…
A:
Q: XYZ Co. has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs…
A: The following calculations are done for XYZ Company.
Q: 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…
A: The correct answer is option c.)
Q: Three production processes - A, B, and C - have the following cost structure: the selling price…
A: Fixed costs: Fixed costs are the costs incurred by a company irrespective of its level of…
Q: A machine is used to produce two interchangeable products. The daily capacity of the machine can…
A: ANSWER Let the number of product 1 be x1. Let the number of product 2 be x2. Max possible…
Aileen Co.
Step by step
Solved in 2 steps
- Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 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 minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profits increase if 200 more hours of machine time can be obtained?
- Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made?Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.Sports Specialists makes baseballs and softballs in a three-step process. Unfortunately, the sewing machine process has been identified as a bottleneck. Each softball has a contribution margin of $6.00 and each baseball has a contribution margin of $2.00. The sewing machine can make 10 softballs or 25 baseballs in one hour. A. If demand for both products is unlimited and the sewing machine capacity cannot be expanded, which product should be produced? B. It demand for each ball is limited to 6,000 balls and there are 800 hours available on the machine, how many of each product should be produced?
- Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
- Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is 1. Costs are as follows: Other data: Required: 1. Compute the break-even point in units using conventional analysis. 2. Compute the break-even point in units using activity-based analysis. 3. Suppose that Busy-Bee could reduce the setup cost by 100 per setup and could reduce the number of maintenance hours needed to 1,000. How many units must be sold to break even in this case? (Round answer up to whole units.)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: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? 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 total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?