Assume a company makes only three products, A, B, and C:Selling price per unitVariable cost per unitMachine-hours per unitMultiple ChoiceThe company has only 2,900 machine-hours available and unlimited demand for each of its three products. The highest total contribution margin that thecompany can earn if it makes optimal use of its constrained resource is closest to:$46,400.$52,200.$369,170.Product A Product B Product C$ 80$ 51$35$ 202.51.25$71,920.$ 65$ 263.0

The contribution margin is an important metric for a business because it indicates how much revenue…

Answered: Assume a company makes only three…

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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Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below: TC GL NG Selling price per unit $ 494.40 $ 449.43 $ 469.68 Variable cost per unit $ 395.20 $ 320.21 $ 373.92 Minutes on the constraint 8.00 7.10 7.60 Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.)
Ivanhoe, Inc. developed the following information for its product: Sales price Variable cost Contribution margin Total fixed costs Per Unit (a) $102.00 71.40 $30.60 $1,288,260 Answer the following independent questions. Number of units to be sold How many units must be sold to break even?
Use the following information for the next 2 questions (8 & 9). Division X produces and sells a product to external and internal customers. Per-unit information about its operations include: Selling price per unit to external customers $250 Variable manufacturing costs per unit 115 Fixed manufacturing overhead costs per unit 70 8. If X is operating at capacity and has unlimited external customer demand, what should be the minimum transfer price? 9. If X has sufficient excess capacity to meet internal demand, what should be the minimum transfer price?
Assume a company makes only three products, A, B, and C: Product A Product B Product C 700 Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit 600 $ 65 $ 26 800 $ 80 $ 35 2.5 $ 45 $ 20 1.25 3.0 The company has only 3,250 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Choice $63,000 $65.000 $58.000
Blue Company developed the following information for its product: Per Unit Sales price $90 Variable cost 63 Contribution margin $27 Total fixed costs $1,215,000 Required:Answer the following independent questions and show computations using the contribution margin technique to support your answers. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000?
Alba Company is considering the introduction of a new product. To determine the selling price of this product, you have gathered the following information: • Direct material cost per unit Direct labor cost per unit • Variable manufacturing cost per unit Total fixed manufacturing costs.. • Variable selling and administration cost per unit Total fixed selling and administration costs.. .$3,000 .$2,250 ..S1,000 .S1,750,000 ..$1,250 .$550,000 If the company requires a rate of return 18% on its investments and $6,000,000 investments are needed. The total direct materials to be used in the production is $3,000,000. Required: 1. If the company uses absorption costing approach to cost-plus pricing, compute: a. The unit product cost. b. The markup percentage. c. The selling price per unit. 2. Assume that the company is considering the introduction of other new product. If the target-selling price per unit is $5,500 and the company investing $5,000,000 to purchase equipment needed produce 500…
An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: JQ $ 350.41 $ 279.11 RQ $ 446.71 $ 338.71 LN Selling price per unit Variable cost per unit $ 161.88 $ 116.12 Minutes on the constraint 2.60 4.60 7.50 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places.)
An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: LN JQ $168.82 $313.84 $403.08 $139.72 $245.80 $287.56 RQ Selling price per unit Variable cost per unit Minutes on the constraint 1.50 4.20 7.60 Rank the products in order of their current profitability from most profitable to least profitable, In other words, rank the products in the order in which they should be emphasized. (Round your Intermedlate calculations to 2 declmoal places.) Multiple Cholce LN. JQ. RQ RQ. LN. JQ RQ. JQ. LN JQ. RQ LN Mc Graw Hill Type here to search 70°F Mostly cloudy 10 DELL
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Fixed cost = 10,000                         Material cost per unit = 0.15 Labor cost per unit = 0.10              Revenue per unit = 0.65 Suppose ABC company sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue.Give a mathematical model for calculating profit and implement your model from part in Excel. If ABC company makes 12,000 units of the new product, what is the resulting profit? Excel format required
Fixed cost = 10,000                         Material cost per unit = 0.15 Labor cost per unit = 0.10              Revenue per unit = 0.65 Suppose ABC company sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue.Give a mathematical model for calculating profit and implement your model from part in Excel. If ABC company makes 12,000 units of the new product, what is the resulting profit? Excel format required other answer for this problem :)
Fixed cost = 10,000                         Material cost per unit = 0.15 Labor cost per unit = 0.10              Revenue per unit = 0.65 Suppose Toys R Us sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Give a mathematical model for calculating profit and implement your model from part in Excel. If Toys R Us makes 12,000 units of the new product, what is the resulting profit? [KINDLY SHOW SOLUTION SINCE I WILL TYPE IT IN EXCEL. THANK YOU SO MUCH.]

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