Best Company produces three products-A, B, & C-with the following characteristics:ABSelling price per unit$30100%$17100%$13100%Variable cost per unit1757%847%46%Contribution margin per unit$1343%$953%$754%Machine hours per unit3.53.51.5The company has only 2,900 machine-hours available each month. Suppose currentmonthly demand for the products in question #11 is as follows:A: 400 units; B: 600 units; and C: 500 units. If Best Company wishes to maximize itscontribution margin, how many of each product will it produce?500 units of C; 400 units of A; and 214 units of B500 units of A; 400 units of B; and 200 units of C600 units of B; 400 units of A; and 500 units of CO 218 units of C; 350 units of B; and 300 units of A

Calculation of Contribution margin per machine hour and rank given A B C Contribution margin…

Answered: 00 units; and C: 500 units. If Best…

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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Wilderness Products, Incorporated, has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,350,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is 24% on all investments. b. A standard cost card has been prepared for the sleeping pad, as shown below: Direct materials Direct labor Manufacturing overhead (20% variable) Total standard cost per pad Standard Quantity or Hours 4.0 yards 2.4 hours 2.4 hours Standard Price or Rate $2.70 per yard $8.00 per hour $12.50 per hour Standard Cost $10.80 19.20 30.00 $ 60.00 c. The only variable selling and administrative expense will be a sales commission of $9 per pad. The fixed selling and administrative expenses will be $732,000 per year. d. Because the company manufactures many products, no more than 38,400 direct…
H1.
1. Assume a company sells three different products. The contribution margin ratio of the first product is 20 percent. The contribution margin ratio of the second product is 50 percent. The contribution margin ratio of the third product is 80 percent. What is the range of the company's overall contribution margin ratio?

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00 units; and C: 500 units. If Best Company wishes in, how many of each product will it produce?