Loose-Leaf for Financial and Managerial Accounting
7th Edition
ISBN: 9781260004861
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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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
Problem 23-3B Sales mix strategies P3
Sung Company produces two models of its product with the same machine. The machine has a capacity of 200 hours per month. The
following information is available.
Selling price per unit
Variable costs per unit
Contribution margin per unit
Machine hours per unit
Maximum unit sales per month
Standard
$60
20
$40
1 hour
550 units
Pro
$80
30
$50
2 hours
175 units
Required
1. Determine the contribution margin per machine hour for each model.
2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month?
3. Assume the maximum demand for the Standard model is 180 units (not 550 units). How many units of each model should the
company produce? How much total contribution margin does this mix produce per month?
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.)
QS 23-18 (Algo) Pricing using variable
GoSnow sells snowboards. Each snowboard requires direct materials of $134, direct labor of $47, variable overhead of $57, and
variable selling, general, and administrative costs of $22. The company has fixed overhead costs of $277,000 and fixed selling,
general, and administrative costs of $347,000. The company has a target profit of $416,000. It expects to produce and sell 10,000
snowboards.
Compute the selling price per unit using the variable Cost method. (Round your intermediate calculations and final answer to nearest
whole dollar amounts.)
Selling price
$
342 per unit
Chapter 23 Solutions
Loose-Leaf for Financial and Managerial Accounting
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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