CONNECT PLUS-FINANCIAL & MANAGERIAL AC
7th Edition
ISBN: 2810020507384
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 23, Problem 11E
Exercise 23-11 Sales mix A1
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4 pounds of the material, $5 uses 3 pounds of the material, and G9 uses 6 pounds of the material. Demand for all products is strong, but only 50,000 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. Orders for which product should be produced and filled first, then second, then third? Support your answer.
K1 | $5 | G9 | |
Selling price………………………… | $160 | $112 | $210 |
Variable costs………………………. | 96 | 85 | 144 |
Check K1 contribution margin per pound, $16
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Students have asked these similar questions
QS 23-18 Product pricing using variable costs LO P6
GoSnow sells snowboards. Each snowboard requires direct materials of $110, direct labor of $35, and variable overhead of $45. The company expects fixed overhead costs of $265,000 and fixed selling and administrative costs of $211,000 for the next year. The company has a target profit of $200,000. It expects to produce and sell 10,000 snowboards in the next year. Compute the selling price using the variable cost method. (Do not round your intermediate calculations. Round your final answer to 2 decimal places.)
12 Our company currenty makes and sells two products: A and B. The relative number of production and sales between A
and B is 2:3. In other words, each time the company produces and sells two units of product A, it produces and sells three
units of product B. The following cost information is available:
Company
A
В
Unit Selling Price
$11
$15
Unit Varible Cost
$5
$7
Total fixed expenses
$15,000
How much sales volume does the company need to make from Product B if it wants to achieve $3,000 profits?
(Do not round intermediate calculations. Round the final answer to the nearest units.)
А.
1,500 units
В.
1,340 units
C.
893 units
D.
1,000 units
Е.
None of the above
Exercise I-Set B
Palawan Company must determine a target selling price for one of its
products. Cost data relating to the product are as follows:
Per Unit
P 30
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable administrative and selling expenses
15
5
Fixed administrative and expenses
40
The costs above are based on an anticipated volume of 70,000 units
produced and sold each period. The company uses cost-plus pricing, and it has a
policy of obtaining target selling prices by adding a markup of 50% of unit
manufacturing cost or by adding a markup of 80% of variable costs.
Required: 1. Compute the target selling price per unit using absorption costing.
2. Compute the target selling price per unit using contribution costing.
Chapter 23 Solutions
CONNECT PLUS-FINANCIAL & MANAGERIAL AC
Ch. 23 - Prob. 1MCQCh. 23 - Prob. 2MCQCh. 23 - Prob. 3MCQCh. 23 - Prob. 4MCQCh. 23 - Prob. 5MCQCh. 23 - Prob. 1DQCh. 23 - Is nonfinancial information ever useful in...Ch. 23 - What is a relevant cost? Identify the two types of...Ch. 23 - Prob. 4DQCh. 23 - Prob. 5DQ
Ch. 23 - Prob. 6DQCh. 23 - Prob. 7DQCh. 23 - Prob. 8DQCh. 23 - Prob. 9DQCh. 23 - Prob. 10DQCh. 23 - Prob. 1QSCh. 23 - Prob. 2QSCh. 23 - Prob. 3QSCh. 23 - Prob. 4QSCh. 23 - Prob. 5QSCh. 23 - Prob. 6QSCh. 23 - Prob. 7QSCh. 23 - Prob. 8QSCh. 23 - Prob. 9QSCh. 23 - Prob. 10QSCh. 23 - Prob. 11QSCh. 23 - Prob. 12QSCh. 23 - Prob. 13QSCh. 23 - Prob. 14QSCh. 23 - Prob. 15QSCh. 23 - Prob. 16QSCh. 23 - Prob. 17QSCh. 23 - Prob. 18QSCh. 23 - Prob. 1ECh. 23 - Prob. 2ECh. 23 - Exercise 23-3 Accept new business or nor...Ch. 23 - Prob. 4ECh. 23 - Exercise 23-5 Make or buy A1 Gelb Company...Ch. 23 - Prob. 6ECh. 23 - Prob. 7ECh. 23 - Prob. 8ECh. 23 - Prob. 9ECh. 23 - Prob. 10ECh. 23 - Exercise 23-11 Sales mix A1 Childress Company...Ch. 23 - Prob. 12ECh. 23 - Prob. 13ECh. 23 - Prob. 14ECh. 23 - Prob. 15ECh. 23 - Prob. 1PSACh. 23 - Prob. 2PSACh. 23 - Prob. 3PSACh. 23 - Prob. 4PSACh. 23 - Prob. 5PSACh. 23 - Prob. 6PSACh. 23 - Prob. 1PSBCh. 23 - Prob. 2PSBCh. 23 - Prob. 3PSBCh. 23 - Prob. 4PSBCh. 23 - Prob. 5PSBCh. 23 - Prob. 6PSBCh. 23 - Prob. 23SPCh. 23 - Prob. 1BTNCh. 23 - Prob. 2BTNCh. 23 - Prob. 3BTNCh. 23 - Prob. 4BTNCh. 23 - Prob. 5BTNCh. 23 - Prob. 6BTNCh. 23 - Prob. 7BTNCh. 23 - Prob. 8BTNCh. 23 - Prob. 9BTN
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