Requirement1: Explanation For computing the contribution margin per unit of constraints resource (i.e. pounds of raw material), the contribution margin per unit of product shall be divided by pounds of raw material required for production of one unit of product. The raw material required per unit of Product is computed by dividing the material cost per unit of product by material cost per pound of raw material... Requirement2: To determine Total contribution to be earned based on production of product which is most profitable based on constraint of raw material shall be determined. Requirement3: To determine The Contribution earned with available raw material with maximum demand of each product given shall be determined. Requirement4: To determine Maximum price which business of willing to pay for additional units of raw material shall be determined.

16th Edition

ISBN: 9781259995484

Author: Ray Garrison

Publisher: MCGRAW-HILL HIGHER EDUCATION

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Question

Chapter 12, Problem 8E

Requirement1:

To determine

The Contribution per pound of raw material shall be determined.

Requirement2:

To determine

Total contribution to be earned based on production of product which is most profitable based on constraint of raw material shall be determined.

Requirement3:

To determine

The Contribution earned with available raw material with maximum demand of each product given shall be determined.

Requirement4:

To determine

Maximum price which business of willing to pay for additional units of raw material shall be determined.

Expert Solution & Answer

Chapter 12 Solutions

Managerial Accounting

Ch. 12.A - EXERCISE 12A-1 Absorption Costing Approach to...Ch. 12.A - EXERCISE 12A-2 Customer Latitude and Pricing...Ch. 12.A - Prob. 3E Ch. 12.A - Prob. 4E Ch. 12.A - Prob. 5E Ch. 12.A - EXERCISE 12A-6 Value-Based Pricing; Absorption...Ch. 12.A - Prob. 7E Ch. 12.A - Prob. 8P Ch. 12.A - Prob. 9P Ch. 12.A - Prob. 10P

Ch. 12.A - Prob. 11P Ch. 12.A - PROBLEM 12A-12 Absorption Costing Approach to...Ch. 12.A - PROBLEM 12A-13 Value-Based Pricing LO12-10 The...Ch. 12 - Prob. 1Q Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - Prob. 4Q Ch. 12 - “Variable costs and differential costs mean the...Ch. 12 - 12-6 "All future costs are relevant in decision...Ch. 12 - Prentice Company is considering dropping one of...Ch. 12 - Prob. 8Q Ch. 12 - 12-9 What is the danger in allocating common fixed...Ch. 12 - 12-10 How does opportunity cost enter into a make...Ch. 12 - 12-11 Give at least four examples of possible...Ch. 12 - 12-12 How will relating product contribution...Ch. 12 - Define the following terms: joint products, joint...Ch. 12 - 12-14 From a decision-making point of view, should...Ch. 12 - What guideline should be used in determining...Ch. 12 - Prob. 16Q Ch. 12 - Prob. 1AE Ch. 12 - Prob. 2AE Ch. 12 - Cane Company manufactures two products called...Ch. 12 - ( Alpha Beta $30 $...Ch. 12 - Prob. 3F15 Ch. 12 - Prob. 4F15 Ch. 12 - Prob. 5F15 Ch. 12 - ( Alpha Beta $30 $...Ch. 12 - Prob. 7F15 Ch. 12 - Cane Company manufactures two products called...Ch. 12 - Prob. 9F15 Ch. 12 - ( Alpha Beta $30 $...Ch. 12 - Prob. 11F15 Ch. 12 - Prob. 12F15 Ch. 12 - ( Alpha ...Ch. 12 - ( Alpha Beta $30 $...Ch. 12 - ( Alpha Beta $30 $...Ch. 12 - EXERCISE 12-1 Identifying Relevant Costs...Ch. 12 - EXERCISE 12-2 Dropping or Retaining a Segment...Ch. 12 - EXERCISE 12-3 Make or Buy Decision LO12-3 Troy...Ch. 12 - EXERCISE 12-4 Special Order Decision...Ch. 12 - EXERCISE 12-5 Volume Trade-Off Decisions...Ch. 12 - Prob. 6E Ch. 12 - Prob. 7E Ch. 12 - Prob. 8E Ch. 12 - ( $5.10 $3.80 $1.00 $4.20 $1.50 $2.40 ) EXERCISE...Ch. 12 - Prob. 10E Ch. 12 - ( $3.60 10.00 2.40 9.00 $25.00 ) EXERCISE 12-11...Ch. 12 - Prob. 12E Ch. 12 - EXERCISE 12-13 Sell or Process Further Decision...Ch. 12 - en r Ch. 12 - Prob. 15E Ch. 12 - ( $150 31 20 29 3 24 15 $272 $34 ) EXERCISE...Ch. 12 - Prob. 17E Ch. 12 - Prob. 18P Ch. 12 - PROBLEM 12-19 Dropping or Retaining a Segment...Ch. 12 - PROBLEM 12-20 Sell or Process Further Decision...Ch. 12 - Prob. 21P Ch. 12 - PROBLEM 12-22 Special Order Decisions LO12-4...Ch. 12 - PROBLEM 12-23 Make or Buy Decision LO12-3 Silven...Ch. 12 - Prob. 24P Ch. 12 - Prob. 25P Ch. 12 - Prob. 26P Ch. 12 - Prob. 27P Ch. 12 - Prob. 28P Ch. 12 - CASE 12-29 Sell or Process Further Decision LO12-7...Ch. 12 - CASE 12-30 Ethics and the Manager; Shut Dora or...Ch. 12 - CASE 12-31 Integrative Case: Relevant Costs;...Ch. 12 - CASE 12-32 Make or Buy Decisions; Volume...Ch. 12 - Prob. 33C

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