Centrum industries has total of 5,400 machine hours available for a monthThe following information is given:Product 1Product 2Product 3Contribution margin per unitP15.00P18.00P7.50Machine hours per unit321If market demand exceeds the available capacity, in what sequence should orders be filledto maximize the company's profits?a. Product 3 first, product 2 second, and product 1 third.b. Product 2 first, product 3 second, and product 1 third.c. Product 3 first, product 1 second, and product 2 third.d. Product 1 first, product 2 second, and product 3 third.

When some input is in limited capacity , then we need to find out contribution per input. For…

Answered: Centrum industries has total of 5,400…

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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Rollins Company manufactures two products—S500 and T750. The company provided the following information with respect to these products: S500 T750 Estimated customer demand (in units) 5,600 4,000 Selling price per unit $ 2,400 $ 4,200 Variable expense per unit $ 1,400 $ 2,400 The company has four manufacturing departments—Fabrication, Molding, Machining, and Assemble & Pack. The capacity available in each department (in hours) and the demands that one unit of each of the company’s products makes on those departments is as follows: S500 (hours per unit) T750 (hours per unit) Capacity (in hours) Fabrication 1 2 4,000 Molding 2 2 6,000 Machining 2 0 5,000 Assemble & Pack 0 3 4,500 The company is trying to decide what product mix will maximize profits. Given that its fixed costs will not change regardless of the chosen mix, the company plans to identify the product mix that maximizes its total contribution margin. Assume the company focuses solely…
Pinter Corporation produces three products and is currently short on machine hours since one of its two machines is down; only 880 machine hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Product A $ 9.00 Product B Product C $ 7.00 $ 9.00 Variable cost per unit Machine hours per unit $ 7.50 $ 6.00 0.75 0.25 $ 6.00 1.00 Demand (units) 700 610 How many of each product should be produced while the machine is down to maximize profit? 800
Question No. 1-1 The HASF Company has an annual plant capacity of 50,000 units. Predicted data on sales and costs are given below. Sales (50 per unit) 1,000,000 Manufacturing cost Variable (material labor and overhead) 40 per unit Fixed overhead 30,000 Selling and administrative expenses Variable (sales commission RS 0.5 per unit) 2 per unit Fixed 7,000 A special order has been received from outside for 5,000 units at a selling price of 45 per unit this order will no effect on regular sales. The usual sales commission on this order will be reduced by one half. Required: Should the company accept / reject the order? Keeping in view the above answer narrate rationale to support your answer
Consider the following production and cost data for two products, Big and Little: Big Little Demand in units 8,000 10,000 Contribution margin per unit $24 $18 Machine-hours needed per unit 2 MH 3 MH Labor hours needed per unit 6 DLH 4 DLH The company has 36,000 direct labor hours available each period. What is the maximum number of Littles that should be made each period? O 10,000 O 4,000 O 9,000
please answer withim 30 minutes...
Assume that a company produced 10,000 units and sold 8,000 units during its first year of operations. It has also provided the following information: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Fixed selling and administrative expense Per Unit $ 240 $ 85 $ 60 $ 10 $ 11 Per Year $ ? $ 250,000 If the company's unit product cost under absorption costing is $205, then what is the amount of fixed manufacturing overhead per year?
32.This is Cost Accounting. Explain briefly and answer. The following information pertains to Lannister Manufacturing Corporation’s Product Y: Annual Demand 33,750 units Annual cost to hold one unit of inventory P15 Setup cost (or the cost to initiate a production run) P500 Beginning Inventory of Product Y - 0 - At present, the company produces 2,250 units of Product X per production run, for a total of 15 production runs per year. The company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product Y If the EOQ model is used, what should be the number of production runs? (round to whole number)
Best Company produces three products-A, B, & C-with the following characteristics: A B Selling price per unit $30 100% $17 100% $13 100% Variable cost per unit 17 57% 8 47% 46% Contribution margin per unit $13 43% $9 53% $7 54% Machine hours per unit 3.5 3.5 1.5 The company has only 2,900 machine-hours available each month. Suppose current monthly demand for the products in question #11 is as follows: A: 400 units; B: 600 units; and C: 500 units. If Best Company wishes to maximize its contribution margin, how many of each product will it produce? 500 units of C; 400 units of A; and 214 units of B 500 units of A; 400 units of B; and 200 units of C 600 units of B; 400 units of A; and 500 units of C O 218 units of C; 350 units of B; and 300 units of A
Flexmatrixs deals with different types of iron rods which has 6,900 machine hours available each month. Product 1 Product 2 Product 3 Contribution margin per unit 17.30 20.30 9.8 Machine hours per unit 4.00 3.00 2.00 The market demand is limited to 2,850 units of each of the three products. What is the maximum possible contribution margin that the company could make in any month?
2. The ABC Company consumes inventory of 67,500 units of components per year. The carrying cost per unit is RO 1.50. The fixed order cost is RO 25 per order. The production planning is 365-day year. a. What is the Economic Order Quantity (EOQ)? Interpret. 219 S b. Calculate and interpret the optimal number of orders to be placed. the ida c. If it takes five days to receive an order from suppliers, at what inventory level should ABC Company place another order.Interpret.
2. MGS a manufacturing company placed an order of 24,000 units semiannually at a price of 20 per unit. Its carrying cost is 15% and the order cost is 12 per order. Compute the following:a) What is the most economical order quantity?b) How many orders need to be placed?

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