Maplewood can sell all the units it can produce of either Product A or Product B butnot both. Product A has a unit contribution margin of $16 and takes two machinehours to make and Product B has a unit contribution margin of $30 and takes threemachine hours to make. If there are 5,000 machine hours available to manufacture aproduct, income will be$10,000 less if Product A is made$10,000 more if Product A is made.the same if either product is madeO $10,000 less if ProductB is made. Please choose the correct statement.If fixed costs are $525,000 and weighted-average unit contribution margin is $350, then thebreak-even point in units is 2,200 units.If fixed costs are $700,000 and weighted-average unit contribution margin is $350, then thebreak-even point in units is 1,000 units.O If fixed costs are $420,000 and weighted-average unit contribution margin is $350, then thebreak-even point in units is 2,200 units.O If fixed costs are $420,000 and weighted-average unit contribution margin is $350, then thebreak-even point in units is 1,200 units.

In Marginal Costing we calculate contribution margin from deducting variable…

Answered: 1Mapiewod can sell all the units it can…

Business

Accounting

1Mapiewod can sell all the units it can produce of either Product A or Product B but not hoth Product A

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

Maplewood 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 $16 and takes two machine
hours to make and Product B has a unit contribution margin of $30 and takes three
machine hours to make. If there are 5,000 machine hours available to manufacture a
product, income will be
$10,000 less if Product A is made
$10,000 more if Product A is made.
the same if either product is made
O $10,000 less if ProductB is made.

Please choose the correct statement.
If fixed costs are $525,000 and weighted-average unit contribution margin is $350, then the
break-even point in units is 2,200 units.
If fixed costs are $700,000 and weighted-average unit contribution margin is $350, then the
break-even point in units is 1,000 units.
O If fixed costs are $420,000 and weighted-average unit contribution margin is $350, then the
break-even point in units is 2,200 units.
O If fixed costs are $420,000 and weighted-average unit contribution margin is $350, then the
break-even point in units is 1,200 units.

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