C14 A 12345570 B D FGH E Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial and production data per unit: Sales price Variable costs Contribution margin Material required in pounds Prod A Prod B Prod C $50.00 $60.00 $75.00 $35.00 $50.00 $54.00 $15.00 $10.00 $21.00 2 1 4 Diverse company only has 2510 pounds of the material required to make its products. Calculate the contribution margin per pound and determine the most profitable sales mix given the limited supply of materials and product demand of 500 units for product A, 850 units of product B and 400 units of product C. 11 12 གཞིཌཋཌཋ ཋ ཐ ང Contribution margin per pound Prod A $7.50 Prod B Prod C $10.00 $5.25 14 Lbs material needed to meet demand XXX 16 Most profitable sales mix (in units) XXX 17 18 NOTE: THERE IS A SOLUTION VIDEO FOR THIS IN CANVAS. CHECK IT OUT IF YOU ARE HAVING TROUBLE. 19 20

C14 A 12345570 B D FGH E Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial and production data per unit: Sales price Variable costs Contribution margin Material required in pounds Prod A Prod B Prod C $50.00 $60.00 $75.00 $35.00 $50.00 $54.00 $15.00 $10.00 $21.00 2 1 4 Diverse company only has 2510 pounds of the material required to make its products. Calculate the contribution margin per pound and determine the most profitable sales mix given the limited supply of materials and product demand of 500 units for product A, 850 units of product B and 400 units of product C. 11 12 གཞིཌཋཌཋ ཋ ཐ ང Contribution margin per pound Prod A $7.50 Prod B Prod C $10.00 $5.25 14 Lbs material needed to meet demand XXX 16 Most profitable sales mix (in units) XXX 17 18 NOTE: THERE IS A SOLUTION VIDEO FOR THIS IN CANVAS. CHECK IT OUT IF YOU ARE HAVING TROUBLE. 19 20

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 1CE: Thomas Corporation produces heating units. The following values apply for a part used in their...

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(e) Product Blue Product Red £ £Selling £12.00 £24.00Variable cost £ 4.00 £ 8.00Contribution margin £ 8.00 £16.00Fixed costs apportioned £200,000 £400,000Budgeted Sales Units 140,000 60,000Required:Calculate the breakeven points, for each product and the company as a wholeand comment on your findings
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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…
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JSON-6854 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio X5 $84.00 O $ 16,650 O$ 29,250 O $ 31,750 O $12,600 25.20 25.20 50.40 $ 33.60 40% 21.00 31.50 52.50 $17.50 25% Z9 $74.00 9.00 42.80 51.80 $ 22.20 30% JSON-6854 has enough demand to sell 750 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 5,400 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-6854 can earn per month using its 5,400 pounds of direct materials optimally?
AE 1 -Evaluate production constraint decisions using quantitative factors and assess special order decisions Rainbow Company produces the following types of paint: RED $50.00 $20.00 4 Selling Price per can Variable cost per can Product mix Direct material W (kg) per can 3kg Fixed manufacturing costs are $1,400,000 for the month BLUE $65.00 $25.00 4 5kg YELLOW $60.00 $25.00 4 7kg PINK $55.00 $20.00 8 5kg (a) Compute the contribution margin per can of each type of paint and the weighted contribution margin (b) Compute the contribution margin per direct material W. Determine which type of paint will have the highest contribution margin per direct material W (c) What is the breakeven number of cans per month? Show the breakeven quantity by the type of paint (d) Total production capacity = 80,000 cans per month for all types of paint Current production of BLUE paint in a month =13,000 cans Rainbow Company receives a special order from Wonder Company to purchase 2,000 cans of SKY BLUE paint…
(e) Product Blue Product Red Selling $12.00 $24.00Variable cost $4.00 $8.00Contribution margin $8.00 $16.00Fixed costs apportioned $200,000 $400,00Budgeted Sales Units 140,000 60,000 Calculate the breakeven points, for each product and the company as a whole and comment on your findings f)Discuss the merits and demerits of the cost volume profit analysis (CVP)
* 00 5 LL Pedregon Coporation has provided the following information: Cost per Cost per Unit $6.70 $3.80 $1.50 Period Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $15,200 Sales commissions Variable administrative expense Fixed selling and administrative expense $0.75 If the selling price is $20.80 per unit, the contribution margin per unit sold is closest to: Multiple Cholce O $3.55 $5.00 O $7.35 $10.30 pe here to search |直。 F4 F5 F7 81 F11 てい %23 % 24 8.
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Total Costs Variable Costs Fixed Costs Total Costs Costs per unit Variable cost per unit Fixed cost per unit 008 S Total cost per unit 0082 $ 60,000 101 150,000 Units produced and sold 80,000 001500 4.50 erinoM nsl 100,000 doa 19A Gigi's Gadgets manufactures and sells a single product. A partially completed schedule of the co total and per unit costs over a relevant range of 60,000 to 100,000 units produced and sold durir given year are listed above. 1. Complete the schedule for the company's total and unit costs above.matul ad quizU 2. Assume that the company sells 90,000 during a year. The selling price is $7.50 per unit. an income statement using the contribution margin format for that year.
12. Lucky Corporation sells three products; Good, Better, Best. Selling price and variable costs are as follows: Good Better Best $18.00 $25.00 Selling price per unit Variable costs per unit $15.00 Direct materials $5.00 $2.00 $2.00 $1.00 $8.00 $5.00 $2.00 $1.00 $10.00 $8.00 $2.00 $2.00 Direct labor Variable overhead Variable selling Fixed costs are $92,256 per month. The products are sold in the following proportions: 25% Good, 30% Better, and 45% Best. How many units of Product Better will need to be sold at the breakeven point? a. 7,208 units b. 8,649 units c. 7,284 units d. 5,952 units e. 9,226 units f. 2,768 units g. 9,610 units h. None of the above
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