Blossom Corporation produces three products, Standard, Deluxe and Superior, with the following characteristics:Selling price per unitVariable cost per unitContribution marginper unitMachine hours per unitStandard Deluxe Superior$2014$62$2217$52$21O Standard first, Deluxe second, Superior thirdO Deluxe first. Standard second, Superior thirdO Superior first, Standard second, Deluxe thirdO Standard first, Superior second, Deluxe third19$22The company has only 1810 machine hours available each period. If demand exceeds the company's capacity, in what sequence shouldorders for the three products be filled to maximize the company's total contribution margin? Sandhillindustries manufactures light fixtures for home, retail, and industrial customers. The Petall line has beenseveral years, and management is considering dropping the line. Recent income statements have been very similar to the followinginformation which was prepared for the most recent year.SalesVariable costsContributionmarginFixed costsOperating incomeHomeO $77300O $99600O $23600O $(6400)$551000358800192200126000$66200Retail$321000218700102300131000$(28700)Industrial$831000681600149400116000$33400Total$17030001259100443900373000$70900►Of the fixed costs, $318000 of it is common costs that have been allocated equally to each product line. What will total operatingincome be if Sandhill drops the retail line?

Contribution per unit is arrived at by deducting cost per unit from sales price per unit. It is one…

Answered: Blossom Corporation 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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