1. The Cabin Creek Coal (CCC) Company owns three mines in Kentucky and WestVirginia, and it provides coal to four utility power plants. The cost of shipping coal fromeach mine to each plant, the capacity at each of the three mines, and the demand at eachplant are shown in the following table:PlantMine134Mine Capacity (tons)1$7$9$10$122209.8.1217031114280Demand (tons)11016090180CCC wants to minimize the costs of shipping coal from its mines to its plants. Formulatealgebraically a linear programming model for this problem

Let Xij refers to the quantum of coal shipped from mine i to plant j and Cij refers to the cost of…

Answered: 1. The Cabin Creek Coal (CCC) Company…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Requlred Informatlon [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Alpha $42 42 $24 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 24 26. 34 27 29. $173 Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 4. Assume that Cane expects to produce and sell 109,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to…
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3 ! 3 of 10 Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Book Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses -int Total cost per unit ences Alpha Beta $ 35 $ 15 48 23 27 25 35 38 32 28 35 30 $ 212 $ 159 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 4. Assume that Cane expects to produce and sell 110,000 Betas during the current year. One of Cane's sales…
West Co.'s manufacturing costs are as follows: Direct material and direct labor Other variable manufacturing costs $700,000 $100,000 Depreciation of factory building and manufacturing equipment $80,000 Other fixed manufacturing overhead $18,000 What amount should be considered product costs for external reporting purposes if the company uses absorption costing? A. $700,000 B. $800,000 C. $880,000 D. $898,000
! Required information [The following information applies to the questions displayed below.] A company produces two products. Product 1 sells for $140 and Product 2 sells for $100. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Product Product 1 2 Direct materials $ 32 $ 16 Direct labor 24 19 Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 10 20 22 16 12 19 14 Total cost per unit $121 $ 92 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Consider each of the following questions separately. 3. Assume the company normally produces and sells 94,000 unit of Product 2 per year. What is the…
Required Information The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Beta $24 32 Direct materials Direct labor Variable manufacturing overhead Traceable fFixed manufacturing overhead Variable selling expenses Common fixed expenses %2442 42 34 31. Total cost per unit $173 607$ The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane normally produces and sells 59,000 Betas per year. What is the financial advantage (disadvantage) of iscontinuing the Beta product line? o search 近

Q. 2. AlMaria LLC is a leading manufacturer of Aluminium Products. The company has two divisions Galvanizing and Molding. The output of the Galvanizing division is transferred to the Molding division for further processing and assembling before they are sold to the customer as complete product. The fixed cost of Galvanizing division is RO 45,000 and that of the Molding division is RO 30,000. Verification of the company's records reveals that the variable cost per unit of the product for Galvanizing and Molding are RO 300 and RO 350 respectively. The product variable cost per unit of Galvanizing division is RO 450 and the total output is 250 units which are sold to customer on completion @ RO 2150 per unit. If the Galvanizing division decides to charge its transfers to Molding division at cost plus profit @ 150%. What will be AlMaria LLC's overall profit and the profits of its two divisions? Determination of AIMaria LLC's overall profit and divisional profits Items of expenses and…
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