Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 730,000 units of Basic, 540,000 units ofClassic, and 127,500 units of Deluxe. Bricktan has limited production capacity of 1,080,000 machine hours. Machine hours per unit are as follows: Basichour; Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the mostprofitable sales mix for Bricktan Incorporated?Multiple Choice86,250 Basic, 540,000 Classic and 127,500 Deluxe.о637,500 Basic, O Classic and 127,500 Deluxe.О412,500 Basic, 288,000 Classic and 127,500 Deluxe.180,000 Basic, 127,500 Classic and 288,000 Deluxe.73,000 Basic, 540,000 Classic and 288,000 Deluxe.

Approach to solving the question:Comprehending Constraints and Objectives: The issue commences with…

Answered: Bricktan Incorporated makes 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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Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 2,460 hours per year. Product Reno has a unit contribution margin of $120 and requires 5 hours of painting department time. Product Tahoe has a unit contribution margin of $75 and requires 3 hours of painting department time. There are no other constraints. Refer to the information for Billings Company above. Required: What is the contribution margin per hour of painting department time for each product? What is the optimal mix of products? What is the total contribution margin earned for the optimal mix?
Rosie’s Company has three products, P1, P2, and P3. The maximum Rosie’s can sell is 72,000 units of P1, 45,000 units of P2, and 33,000 units of P3. Rosie’s has limited production capacity of 30,000 hours. It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie’s Company? Multiple Choice 138,000 P1, 45,000 P2, 33,000 P3. 29,700 P1, 45,000 P2, 138,000 P3. 138,000 P1, 41,000 P2, 138,000 P3. 31,500 P1, 41,000 P2, 33,000 P3. 29,700 P1, 46,000 P2, 29,700 P3.
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