Question

XYZ Company produces two products, A and B. For the coming period, 135,000 machine hours and...

XYZ Company produces two products, A and B. For the coming period, 135,000
machine hours and 175,000 direct labor hours are available. Information on
the two products appears below:

                                           Product A      Product B
contribution margin per unit ...........      $7.00         $6.50
machine hours per unit .................       4.00          6.00
direct labor hours per unit ............       8.00          7.00

Calculate the number of units of Product A that should be produced in order
to maximize net income.
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
XYZ Company produces two products, A and B. For the coming period, 140,000 machine hours and...
XYZ Company produces two products, A and B. For the coming period, 140,000 machine hours and 210,000 direct labor hours are available. Information on the two products appears below: Product A Product B selling price per unit ........... $9.00 $8.00 variable costs per unit .......... $2.00 $5.00 machine hours per unit ........... 5.00 2.00 direct labor hours per unit ...... 3.00 6.00 Calculate the number of units of Product B that should be produced in order to maximize net income.
batman, Inc. produces and sells two products, L and V. Revenue and cost information for the...
batman, Inc. produces and sells two products, L and V. Revenue and cost information for the two products from last month appear below: Product L Product V selling price per unit ........... $15.00 $12.00 variable costs per unit .......... $ 8.00 $ 7.00 For the coming month, Betty would like to use linear programming in order to maximize monthly profits. Each month Betty has 80,000 direct labor hours available and 60,000 machine hours available. Product L requires 5 direct labor...
Betty DeRose, Inc. produces and sells two products, L and V. Revenue and cost information for...
Betty DeRose, Inc. produces and sells two products, L and V. Revenue and cost information for the two products from last month appear below: Product L Product V selling price per unit ........... $15.00 $12.00 variable costs per unit .......... $ 8.00 $ 7.00 For the coming month, Betty would like to use linear programming in order to maximize monthly profits. Each month Betty has 80,000 direct labor hours available and 60,000 machine hours available. Product L requires 5 direct...
XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 48,000...
XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 48,000 machine hours per year. The following information is available for planning purposes: Product A Product B Product C demand for next year ............. 24,000 units 25,000 units 12,000 units selling price per unit ........... $80 $120 $160 direct material cost per unit .... $24 $ 21 $ 38 direct labor cost per unit ....... $18 $ 50 $ 38 variable overhead cost per unit...
XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 48,000...
XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 48,000 machine hours per year. The following information is available for planning purposes: Product A Product B Product C demand for next year ............. 24,000 units 25,000 units 12,000 units selling price per unit ........... $80 $120 $160 direct material cost per unit .... $24 $ 21 $ 38 direct labor cost per unit ....... $18 $ 50 $ 38 variable overhead cost 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...
Local Steel Construction Company produces two products, steel and wood beams. Steel beams have a unit...
Local Steel Construction Company produces two products, steel and wood beams. Steel beams have a unit contribution margin of $200, and wood beams have a unit contribution margin of $150. The demand for steel beams exceeds Local Steel Construction Company's production capacity, which is limited by available direct labor and machine-hours. The maximum demand for wood beams is 90 per week. Management desires that the product mix should maximize the weekly contribution toward fixed costs and profits. Direct manufacturing labor...
CyclePath Company produces two different products that have the following price and cost characteristics: Bicycle Tricycle...
CyclePath Company produces two different products that have the following price and cost characteristics: Bicycle Tricycle Selling price per unit 100 400 Variable cost per unit 40 240 Management believes that pushing sales of the Bicycle product would maximize company profits because of the high contribution margin per unit for this product. However, only 50,000 labor hours are available each year, and the Bicycle product requires 4 labor hours per unit while the Tricycle model requires 2 labor hours per...
A firm makes two products, Alpha and Beta. Alpha Beta Sales price per unit $7.00 $10.00...
A firm makes two products, Alpha and Beta. Alpha Beta Sales price per unit $7.00 $10.00 Variable cost per unit $4.00 $8.00 Demand 5,000 4,000 Machine hours used 5 2 The total available machine hours is 10,000. How many of Alpha should be in the product mix to maximize the profit?
THE Company manufactures two products. Information about these two products for the most recent year is...
THE Company manufactures two products. Information about these two products for the most recent year is given below: Product A Product B selling price per unit $18 $16 variable costs per unit $ 6 $ 5 THE's total expected fixed costs for the coming year amount to $60,000. It takes 5 machine hours and 3 direct labor hours to produce one unit of Product A and it takes 4 machine hours and 8 direct labor hours to produce one unit...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT