Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?Product AProduct BProduct C Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):ProductB$ 54.00Selling priceVariable expenses:Direct materialsOther variable expensesTotal variable expensesContribution marginContribution margin ratioA$ 80.0024.0024.0048.00$ 32.0040%18.0025.2043.20$ 10.8020%C$ 80.0012.0044.0056.00$ 24.00Contribution margin per pound of the constraining resource30%The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. Thematerial costs $3 per pound with a maximum of 7,000 pounds available each month.Required:1. Calculate the contribution margin per pound of the constraining resource for each product.2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 7,000 pounds ofmaterials?Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimalplaces.)Product A Product B Product C

The contribution margin is calculated as the difference between sales and variable costs. The…

Answered: Benoit Company produces three…

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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Novak Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products: Normal High Superior Selling price per unit $ 35.00 $ 47.00 $ 54.00 Variable costs per unit $ 30.17 $ 40.00 $ 50.00 Contribution margin per unit $ 4.83 $ 7.00 $ 4.00 Machine hours required 0.02 0.04 0.08 (a) Determine the contribution margin per machine hour. Contribution Margin Normal $ per machine hour High $ per machine hour Superior $ per machine hour
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $800 per unit, of which $540 is product cost and $260 is selling and administrative expenses. In addition, the total cost of $800 is made up of $460 variable cost and $340 fixed cost. The desired profit is $168 per unit. Determine the markup percentage on total cost. %
rmn.1
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units the relevant range of production is 500 units to 1,500 units) Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 32,100 12,700 9,400 7,708 Required: a. What is the margin of safety in dollars? (Do not round intermediate calculations.) b. What is the margin of safety percentage? Margin of safety
ed - t 0 ances Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 58.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $88.00 26.40 26.40 52.80 $ 35.20 40% 12.00 34.40 46.40 $ 11.60 201 Contribution margin per pound of the constraining resource Required 1 C $ 80.00 12.00 44.00 56.00 $ 24.00 The company estimates it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,400 pounds of…
Question: Warner Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 2,070 1,200 $210,500 158,400 3,200 Required: 246,400 a) Determine the variable cost per unit and the total fixed cost. (Round to nearest dollar) b) Based on part (a), estimate the total cost for 1,580 units of production.
Max Machining incurs the following utilities costs at different levels of production: 0 units: 500 units: 1,000 units: How would utility costs be properly classified? Select one: A. Stepped B. Fixed C. Mixed D. Curvilinear E. Variable $120 $2,620 $5,120
JIFG Company sales each unit for P 58 , Variable cost of each unit is P 28, Determine the contribution margin per unit
be determined using the above information Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $125; Variable costs per unit includes: Direct material $15, Direct manufacturing labor $10, Manufacturing overhead $5, and Selling costs $10; Annual fixed costs $78,000. What is the contribution margin percentage? O a. None of the given answers O b. 68% O c. 70% d. 32% e. 60% NEXT PAGE AGEVindows but Jail ENG G 4)
Please do not give solution in image format thanku
Select cost information for Seacrest Enterprises is as follows: Direct materials Utilities expense Rent expense Based on this information: Multiple Choice O 1,000 units of output Total Cost/Unit $ 5,000 $ 5.00 $ 1,000 $ 1.00 $4,000 $ 4.00 Both direct materials and rent expense are variable costs. 5,000 units of output Cost/Unit Total $ 25,000 $ 3,750 $ 4,000 Utilities expense is a mixed cost and rent expense is a variable cost. Utilities expense is a mixed cost and rent expense is a fixed cost. Direct materials is a fixed cost and utilities expense is a mixed cost. $ 5.00 $ 0.75 $ 0.80
JSON-5313 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 Selling price $ 72.00 $ 54.00 $ 62.00 Variable expenses: Direct materials 21.60 18.00 9.00 21.60 22.50 34.40 43.20 43.40 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 40.50 $13.50 $28.80 $18.60 40% 25% 30% JSON-5313 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 4,800 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-5313 can earn per month using its 4,800 pounds of direct materials optimally? O $ 10,800 O $ 13,020 O $ 23,820 O $ 26,320

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