ABC corp has 2 plants to produce a single product that sells for a single price: $147. Variable manufacturing costs at plant A is 78 whereas plant B is 82. Fixed manufacturing costs per unit are 33 for plant A and 15 for plant B. Variable marketing costs are 8 for plant A and 12 for plant B whereas fixed distribution costs per unit are 22 and 12 for plants A and B respectively. Total capacity for each plant is 400 units per day and 320 units per day for plants A & B respectively. The normal number of workdays for both plants is 240 days, but they can expand to 300 days if they use overtime, which increases variable manufacturing cost per unit by $3 at plant A, and $8 for plant B. All fixed cost per unit calculations are based on a normal capacity of 240 days. In order for the firm (both plants) to produce 200,000 units AND maximize profits, how many days of overtime will plant B incur?   ABC corp has 2 plants to produce a single product that sells for a single price: $141. Variable manufacturing costs at plant A is 71 whereas plant B is 88. Fixed manufacturing costs per unit are 26 for plant A and 14 for plant B. Variable marketing costs are 8 for plant A and 11 for plant B whereas fixed distribution costs per unit are 24 and 17 for plants A and B respectively. Total capacity for each plant is 400 units per day and 320 units per day for plants A & B respectively. The normal number of workdays for both plants is 240 days, but they can expand to 300 days if they use overtime, which increases variable manufacturing cost per unit by $3 at plant A, and $8 for plant B. All fixed cost per unit calculations are based on a normal capacity of 240 days. What is the margin of safety (based on normal days at capacity and no changes to inventory ), in percent, for plant B?   Which of the following transactions does not change the current ratio to total current assets? Question 3 options:   A) Equipment is purchased with as three year note and a 10 percent cash down payment.   B) A cash dividend is declared.   C) Short-term notes payable are retired with cash.   D) A cash advance is made to a divisional office.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC corp has 2 plants to produce a single product that sells for a single price: $147. Variable manufacturing costs at plant A is 78 whereas plant B is 82. Fixed manufacturing costs per unit are 33 for plant A and 15 for plant B. Variable marketing costs are 8 for plant A and 12 for plant B whereas fixed distribution costs per unit are 22 and 12 for plants A and B respectively. Total capacity for each plant is 400 units per day and 320 units per day for plants A & B respectively. The normal number of workdays for both plants is 240 days, but they can expand to 300 days if they use overtime, which increases variable manufacturing cost per unit by $3 at plant A, and $8 for plant B. All fixed cost per unit calculations are based on a normal capacity of 240 days.

In order for the firm (both plants) to produce 200,000 units AND maximize profits, how many days of overtime will plant B incur?

 

ABC corp has 2 plants to produce a single product that sells for a single price: $141. Variable manufacturing costs at plant A is 71 whereas plant B is 88. Fixed manufacturing costs per unit are 26 for plant A and 14 for plant B. Variable marketing costs are 8 for plant A and 11 for plant B whereas fixed distribution costs per unit are 24 and 17 for plants A and B respectively. Total capacity for each plant is 400 units per day and 320 units per day for plants A & B respectively. The normal number of workdays for both plants is 240 days, but they can expand to 300 days if they use overtime, which increases variable manufacturing cost per unit by $3 at plant A, and $8 for plant B. All fixed cost per unit calculations are based on a normal capacity of 240 days.

What is the margin of safety (based on normal days at capacity and no changes to inventory ), in percent, for plant B?

 

Which of the following transactions does not change the current ratio to total current assets?

Question 3 options:

 

A)

Equipment is purchased with as three year note and a 10 percent cash down payment.

 

B)

A cash dividend is declared.

 

C)

Short-term notes payable are retired with cash.

 

D)

A cash advance is made to a divisional office.

                         
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