14. LO 10.6 A company produces two products, E and F, in batches of 100 units. Theproduction and cost data are:Product EProduct FContribution margin per batchMachine set-ups needed per batch$450$3402520The company can only perform 12,000 set-ups each period yet there is unlimited demand foreach product. What is the differential profit from producing product E instead of product F forthe year?$216,000$204,000$12,000$54,000А.В.С.D.

Answered: Image /qna-images/answer/4d1497a1-5394-4d88-a651-00b2060aeb16.jpg

Answered: 14. LO 10.6 A company produces two…

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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20 Hsu, Inc. sells a single product for $12. Variable costs are $8 per unit and fixed costs total S360,000 at a volume level of 60,000 units, Assuming that fixed costs do not change, Hsu's break-even point would be: A) 45,000 units. B) 90,000 units C) 30,000 units. D) negative because the company loses $2 on every unit sold. E) a positive amount other than the specific amounts given.
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16. Jaffa Limited produces three products—X, Y, & Z—with the following characteristics: X X Y Y Z Z Selling price per unit $20 100% $16 100% $20 100% Variable cost per unit 12 60% 12 75% 8 40% Contribution margin per unit $8 40% $4 25% $12 60% Machine hours per unit 5 3 4 The company has only a limited number of machine-hours available each month. If demand exceeds the company's capacity, in what sequence should orders be filled if the company wants to maximize its total contribution margin? Multiple Choice a)Orders for Y first, X second, and Z third. b)Orders for X first, Z second, and Y third. c)Orders for Z first, Y second and X third d)Orders for Z first, X second, and Y third. e)Orders for Y only
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? А. 100 В. 180 С. 200 D. 2,000
Sh9 Please help me. Solution Thankyou.
6-16 A process plant making 5000 kg/day of a product selling for $1.75/kg has annual variable pro- duction costs of $2 million at 100 percent capacity and fixed costs of $700,000. What is the fixed cost per kilogram at the breakeven point? If the selling price of the product is increased by 10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35 percent of gross earnings?
None

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