30. EGG Company produces three products A, B, C. A machine is used to produce the products. The contribution margin, sales demands and time of the machine (in minutes) are as follows: DEMAND CM MACHINE TIME Product A 1, 000 P20 10 Product B 800 18 5 Product C 1, 500 25 10 There are 400 hours available on the machine during the week. How many units should be produced and sold to maximize the weekly contribution margin? A B а. 1, 000 800 1, 500 b. 500 800 1, 500 C. 900 1, 500 d. 1, 000 800 1,000

30. EGG Company produces three products A, B, C. A machine is used to produce the products. The contribution margin, sales demands and time of the machine (in minutes) are as follows: DEMAND CM MACHINE TIME Product A 1, 000 P20 10 Product B 800 18 5 Product C 1, 500 25 10 There are 400 hours available on the machine during the week. How many units should be produced and sold to maximize the weekly contribution margin? A B а. 1, 000 800 1, 500 b. 500 800 1, 500 C. 900 1, 500 d. 1, 000 800 1,000

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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Tomball Co. manufactures two chair models, Standard and Premium. Weekly demand is estimated to be 150 units of the Standard Model, 100 units of the Premium Model, and 75 units of the Deluxe Model. Only 650 machine hours are available per week. The following per unit data apply: Standard Premium Deluxe Maximum demand (in units) 150 100 75 Current production (in units) 100 50 50 Contribution margin per unit $16 $24 $35 Number of machine hours required 2 4 5 Required: Please answer all the following questions, and show your works and computations to get full credits. 1. What is the contribution margin per machine hour for each model? b. What is the total contribution margin at the current level of production for each model? c. Given maximum capacity of 650 machine hours, how many machine hours would you recommend of each model to maximize weekly production profits? How many units of each model? d. If there is no limit for machine hours available per week (instead of only 650 machine hour…
Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit Machine minutes needed per unit $120 10 minutes $112 8 minutes A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? Multiple Choice $840,000 $780,000 $720,000
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6. Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are as follows: direct materials = $14; direct labour = $8; variable overhead = $3; sales commission is 10% of price. Its fixed monthly costs are $42,000. Required: 1. Using the above cost data, set up a monthly cost equation. 2. What is the company’s contribution margin percentage? (Round your answer to 2 decimal places.)
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please answer within 30 minutes.
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d
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