1. How many of each product should be sold to maximize the total contribution margin? If a product should not be produced at all, enter "0" for your answer. Number of basic units: 1,601,000 Number of standard units: Number of deluxe units: What is the contribution margin per machine hour for each of these products? If required, round your answers to the nearest cent. Basic units: 52.20 per machine hour Standard units: Deluxe units: 32.2 per machine hour 38.72 per machine hour What is the total contribution margin for this product mix? 8,357,220 2. Suppose that Patz can sell no more than 263,000 units of each type at the prices indicated. What product mix would you recommend? Number of basic units: Number of standard units: Number of deluxe units: What would be the total contribution margin? 3. What data analytic type(s) are being used in Requirements 1 and 2? Choose from the following types: descriptive, diagnostic, predictive, and prescriptive. Explain your choices. See Exhibits 2.5 and 2.6, for a brief review of data analytics. In both requirements, the optimal product mix is calculated by the model; thus, the mix is what should be used and accordingly corresponds to the prescriptive type.

1. How many of each product should be sold to maximize the total contribution margin? If a product should not be produced at all, enter "0" for your answer. Number of basic units: 1,601,000 Number of standard units: Number of deluxe units: What is the contribution margin per machine hour for each of these products? If required, round your answers to the nearest cent. Basic units: 52.20 per machine hour Standard units: Deluxe units: 32.2 per machine hour 38.72 per machine hour What is the total contribution margin for this product mix? 8,357,220 2. Suppose that Patz can sell no more than 263,000 units of each type at the prices indicated. What product mix would you recommend? Number of basic units: Number of standard units: Number of deluxe units: What would be the total contribution margin? 3. What data analytic type(s) are being used in Requirements 1 and 2? Choose from the following types: descriptive, diagnostic, predictive, and prescriptive. Explain your choices. See Exhibits 2.5 and 2.6, for a brief review of data analytics. In both requirements, the optimal product mix is calculated by the model; thus, the mix is what should be used and accordingly corresponds to the prescriptive type.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...

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Bridgeport Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Selling price Variable costs Machine hours Product Basic $43.00 $19.00 0.50 Show Transcribed Text Calculate the contribution margin per machine hour for each product. Question Part Score Contribution margin per machine hour $ Basic eTextbook and Media Deluxe Deluxe $52.00 $23.30 Bridgeport should manufacture the Basic 0.70 If 1,800 additional machine hours are available, which product should Bridgeport manufacture? - Show Transcribed Text Total contribution margin $ Basic Prepare an analysis showing the total contribution margin if 1,800 additional hours are: (1) Divided equally between the products. product. $ Deluxe Total contribution margin $ (2) Allocated entirely to the product identified in part (b).
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Peach has received a special order for 11,000 units of its product. The product normally sells for $22 and has the following manufacturing costs: Per unitDirect materials $ 6Direct labor 4Variable manufacturing overhead 3Fixed manufacturing overhead 4Unit cost $ 17 Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $11,000 incremental profit? Multiple Choice 1. $22 2.$203.$174.$14
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
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Product Mix Decision, Single Constraint Norton Company produces two products (Juno and Hera) that use the same material input. Juno uses two pounds of the material for every unit produced, and Hera uses five pounds. Currently, Norton has 16,000 pounds of the material in inventory. All of the material is imported. For the coming year, Norton plans to import an additional 8,000 pounds to produce 2,000 units of Juno and 4,000 units of Hera. The unit contribution margin is 30 for Juno and 60 for Hera. Also, assume that Nortons marketing department estimates that the company can sell a maximum of 2,000 units of Juno and 4,000 units of Hera. Norton has received word that the source of the material has been shut down by embargo. Consequently, the company will not be able to import the 8,000 pounds it planned to use in the coming years production. There is no other source of the material. Required: 1. Compute the total contribution margin that the company would earn if it could manufacture 2,000 units of Juno and 4,000 units of Hera. 2. Determine the optimal usage of the companys inventory of 16,000 pounds of the material. Compute the total contribution margin for the product mix that you recommend.
Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?