Question

A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $8 and takes two machine hours to make and Product B has a unit contribution margin of $22.5 and takes three machine hours to make. If there are 5000 machine hours available to manufacture a product, income will be $17500 less if Product B is made. $17500 more if Product A is made. $17500 less if Product A is made. the same if either product is made.

Answer #1

A company can sell all the units it can produce of either
Product A or Product B but not both. Product A has a unit
contribution margin of $18 and takes two machine hours to make and
Product B has a unit contribution margin of $30.0 and takes three
machine hours to make. If there are 5000 machine hours available to
manufacture a product, income will be
$5000 less if Product A is made.
$5000 less if Product B is...

1. A company can sell all the units it can produce of either
Product A or Product B but not both. Product A has a unit
contribution margin of $8 and takes two machine hours to make and
Product B has a unit contribution margin of $18.0 and takes three
machine hours to make. If there are 5000 machine hours available to
manufacture a product, income will be
$10000 more if Product A is made.
$10000 less if Product B...

Sunland Company can sell all the units it can produce of either
Plain or Fancy but not both. Plain has a unit contribution margin
of $82 and takes two machine hours to make and Fancy has a unit
contribution margin of $99 and takes three machine hours to make.
There are 2400 machine hours available to manufacture a product.
What should Sunland do?
Make Plain which creates $8 more profit per machine hour than
Fancy does.
The same total profits...

Bramble Corp. can sell all the units it can produce of either
Plain or Fancy but not both. Plain has a unit contribution margin
of $84 and takes two machine hours to make and Fancy has a unit
contribution margin of $105 and takes three machine hours to make.
There are 2400 machine hours available to manufacture a product.
What should Bramble do?

Oriole Company can sell all the units it can produce of either
Plain or Fancy but not both. Plain has a unit contribution margin
of $66 and takes two machine hours to make and Fancy has a unit
contribution margin of $63 and takes three machine hours to make.
There are 2400 machine hours available to manufacture a product.
What should Oriole do?
A.Make Plain which creates $12 more profit per machine hour than
Fancy does.
B.The same total profits...

Mays Company can sell all of product A that it produces but only
160,000 units of product Z. The company has limited production
capacity. It can produce 6 units of A per hour or 10 units of Z per
hour, and it has 30,000 production hours available. Contribution
margin per unit is $12 for A and $10 for Z. What is the most
profitable sales mix for this company?

In Zhuang LTD , data concerning two products are Contribution
margin per unit—Product A $10, Product B $12; machine hours
required for one unit—Product A 2, Product B 3.
a) Calculate the contribution margin per unit of the limited
resource for each product:
Product A: $ Answer per hour
Product B: $ Answer per hour
b) If Zhuang LTD has a limited number of machine hours and can sell
all the units produced of either product, which product should it...

In Zhuang LTD , data concerning two products are Contribution
margin per unit—Product A $10, Product B $12; machine hours
required for one unit—Product A 2, Product B 3.
a) Calculate the contribution margin per unit of the limited
resource for each product:
Product A: $ Answer per hour
Product B: $ Answer per hour
b) If Zhuang LTD has a limited number of machine hours and can sell
all the units produced of either product, which product should it...

6.Logan Company can sell all of the standard and premier
products they can produce, but it has limited production capacity.
It can produce 6 standard units per hour or 4 premier units per
hour, and it has 34,200 production hours available. Contribution
margin per unit is $20 for the standard product and $28 for the
premier product. What is the most profitable sales mix for Logan
Company?

Colt Company owns a machine that can produce two specialized
products. Production time for Product TLX is three units per hour
and for Product MTV is four units per hour. The machine’s capacity
is 2,400 hours per year. Both products are sold to a single
customer who has agreed to buy all of the company’s output up to a
maximum of 4,080 units of Product TLX and 4,580 units of Product
MTV. Selling prices and variable costs per unit to...

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