Question

Assume SJ Printing Company asked you to evaluate two products (A&B). The following data pertains to...

Assume SJ Printing Company asked you to evaluate two products (A&B). The following data pertains to these products. Product A: Selling price per unit 60; Variable cost per unit 40; Total fixed costs 20,000; Product A: Selling price per unit 80; Variable cost per unit 50; Total fixed costs 20,000. Analyzing the data at what production level do you recommend the company to adopt (1) product A, (2) product B, and at what production level the company's decision to produce A or B will be indifferent.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1) ABC Company sells two products. A and B. The weighted average per unit is $36...
1) ABC Company sells two products. A and B. The weighted average per unit is $36 and fixed costs are $20,300. The sales mix is 55% for A and 45% for B. How many units of Product B must be sold by ABC Company to break-even? 2) Using the high low method, ABC Company calculated the variable cost as $2.2 per unit. The high level of the activity was 2,300 units and $20,974 of total cost. Total fixed costs equal...
Alpha company manufactures and sells two products: Product A and Product B. The following costs were...
Alpha company manufactures and sells two products: Product A and Product B. The following costs were incurred during the company’s first year of operations: Variable cost per unit: Product A Product B Direct materials $7 $6 Direct labor $9 $7 Variable manufacturing overhead $4 $7 Variable selling and administrative cost $5 $3 Fixed cost per year: Fixed manufacturing overhead $320,000 $270,000 Fixed selling and administrative cost $210,000 $150,000 During the year, the company produced 27,000 units of product A and...
Zola Company manufactures and sells one product. The following information pertains to the company’s first year...
Zola Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials $ 13 Fixed costs per year: Direct labor $ 144,000 Fixed manufacturing overhead $ 210,000 Fixed selling and administrative expenses $ 65,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Zola produced 18,000 units and sold 14,400 units. The selling price of...
Zola Company manufactures and sells one product. The following information pertains to the company’s first year...
Zola Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials $ 15 Fixed costs per year: Direct labor $ 185,250 Fixed manufacturing overhead $ 240,000 Fixed selling and administrative expenses $ 72,500 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Zola produced 19,500 units and sold 15,600 units. The selling price of...
Zola Company manufactures and sells one product. The following information pertains to the company’s first year...
Zola Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials $ 14 Fixed costs per year: Direct labor $ 157,250 Fixed manufacturing overhead $ 220,000 Fixed selling and administrative expenses $ 67,500 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Zola produced 18,500 units and sold 14,800 units. The selling price of...
Naomi company manufactures and sells one product. The following information pertains to each of the company’s...
Naomi company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations, using super-variable costing.       Variable cost per unit:    Direct materials $10 Fixed costs per year:    Direct labor $113,400 Fixed manufacturing overhead $94,500 Fixed selling and administrative expenses $233,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. The selling price of the company’s product is $150 per unit. Year 1...
Naomi company manufactures and sells one product. The following information pertains to each of the company’s...
Naomi company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations, using super-variable costing.       Variable cost per unit:    Direct materials $10 Fixed costs per year:    Direct labor $113,400 Fixed manufacturing overhead $94,500 Fixed selling and administrative expenses $262,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. The selling price of the company’s product is $150 per unit. Year 1...
Bacon Company makes four products in a single facility. These products have the following unit product...
Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 15.25 $ 11.15 $ 11.95 $ 11.55 Direct labor 20.35 28.35 34.55 41.35 Variable manufacturing overhead 5.25 3.65 3.55 4.15 Fixed manufacturing overhead 27.45 35.75 27.55 38.15 Unit product cost $ 68.30 $ 78.90 $ 77.60 $ 95.20 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit...
XYZ company produces and sells five products: A, B, C, D and E. The following data...
XYZ company produces and sells five products: A, B, C, D and E. The following data relate to its five products A B C D E Monthly demand in units 80 60 40 90 50 Selling price per unit $230 $70 $100 $80 $90 Variable costs per unit $110 $37 $64 $44 $ 27 Total fixed costs $100,000 Labor time in hours per unit 1.2 0.3 0.6 0.4 0.9 There are a total of 201 labor hours available per month...
Zola Company manufactures and sells one product. The following information pertains to the company’s first year...
Zola Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials $ 17 Fixed costs per year: Direct labor $ 247,250 Fixed manufacturing overhead $ 280,000 Fixed selling and administrative expenses $ 82,500 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Zola produced 21,500 units and sold 17,200 units. The selling price of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT