Answered: 1- The company yearly profit 2- Use…

1- The company yearly profit 2- Use goal seek to find the following a. At what PRODUCT B demand both products will generate the same revenue?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 15E

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Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

plZ urgently

The following is yearly information on two main sources for the company profit:
Row material
Labor cost
Unit made
Demand
price
cost
PRODUCT A
$30
$100
3000
1850
250
PRODUCT B
$45
$78
2500
2100
170
The fixed cost is estimated to be $1000 annually.
Based on the above information find the following:
1- The company yearly profit
2- Use goal seek to find the following
a. At what PRODUCT B demand both products will generate the same revenuc?
b. How much they should produce from each Product A and B, to reach a profit of $500,00,
if the demand of them is equal to .75 of the production and Product A should be 50% of
Product B.
3- If the company will sell the same amount from Product A and Product B which represents 65%
for Product A and 76% for Production B, how much they should produce from both the get profit
of $750,000

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