Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is three units per hour and for Product MTV is four units per hour. The machine’s capacity is 2,500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company’s output up to a maximum of 4,250 units of Product TLX and 4,732 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $ per unit Product TLX Product MTV Selling price per unit $ 12.50 $ 7.50 Variable costs per unit 3.75 4.50 I need the answer for PRODUCT MTV units produced for the most profitable sales m
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Exercise 23-6 Sales mix determination and analysis LO P3
Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is three units per hour and for Product MTV is four units per hour. The machine’s capacity is 2,500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company’s output up to a maximum of 4,250 units of Product TLX and 4,732 units of Product MTV. Selling prices and variable costs per unit to produce the products follow.
$ per unit | Product TLX | Product MTV | ||||||
Selling price per unit | $ | 12.50 | $ | 7.50 | ||||
Variable costs per unit | 3.75 | 4.50 | ||||||
I need the answer for PRODUCT MTV units produced for the most profitable sales mix !!!!
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- 12 Our company currenty makes and sells two products: A and B. The relative number of production and sales between A and B is 2:3. In other words, each time the company produces and sells two units of product A, it produces and sells three units of product B. The following cost information is available: Company A В Unit Selling Price $11 $15 Unit Varible Cost $5 $7 Total fixed expenses $15,000 How much sales volume does the company need to make from Product B if it wants to achieve $3,000 profits? (Do not round intermediate calculations. Round the final answer to the nearest units.) А. 1,500 units В. 1,340 units C. 893 units D. 1,000 units Е. None of the aboveQuestion 10.4 Big Machines Corp. has two divisions. Division Y manufactures components that can be sold in the external market place or transferred to Division Z for further processing. The following data relate to Division Y's component product. Variable manufacturing costs/unit $925 Fixed costs/unit at capacity $275 Selling price/unit $1,800 The capacity of the plant is 2,500 units per year. Division Z has offered to purchase 350 units from Division Y at a price of $1,600/unit, which is the market price of the component. The manager of Division Y has refused this offer stating that it would only return a rate of 25.00%, when the divisional target return on sales is 28.00%. The Division Y manager also states that additional fixed costs of $195,000 would be required to produce the 350 units. The corporate required rate of return is 18% of assets and the existing asset base in Division Y is $2,500,000. Required: How many units must Division Y sell in order…CP Analysis of Multiple Products Steinberg Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Steinberg expects to sell 80,000 regular models and 16,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model Total Sales $12,000,000 $10,880,000 $22,880.000 Less: Variable costs 7.200.000 6,528,000 13,728,000 Contribution margin $4,800,000 $4,352,000 $9,152,000 Less: Direct fixed costs 1,200.000 960,000 2,160,000 Segment margin $3,600,000 $3,392,000 $6,992,000 Less: Common fixed costs 1,386,400 Operating income $5,605,600 Required: 1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit Regular models X units Deluxe models X units 2. Using information only from the total column of the income…
- PROBLEM 14 (SPECIAL ORDER) The waterbed company manufactures several types of waterbeds expecting a jump in demand for its product. The company built a large plant with 1,250 units that currently is being utilized at 80% of capacity. A salesman brings in an offer from a large motel chain to purchase 200 heated king-size waterbeds for a price of Rs.550 each. Normal selling price for the bed is Rs.1,200 each. The schedule of the present costs of the king-size waterbeds for the current year's production was as follows: Acceptance of the order would cause no increase in any fixed cost. Costs for 1000 Units Unit Cost Direct Materials Rs. 3,00,000 Rs. 300 Direct Labour 1,00,000 100 Manufacturing Overhead (40% variable) 2,00,000 200 Marketing (1/3 variable) Administrative (10% variable) 3,00,000 300 1,00,000 100 Total Rs.10,00,000 Rs.1,000 Required: (a) Should the company accept the offer? (b) Would your answer to be change if sales commission of Rs. 50 a bed could be eliminated on this…Question 6 Amundsen Company makes 60,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Fixed Selling Total $ 10.10 $17.40 $ 2.70 $15.00 $ 2.75 $ 3.25 $51.20 An outside supplier has offered to sell the company all of these parts it needs. If the company accepts this offer, the facilities now being used to make the part would be idle and fixed manufacturing overhead would be reduced by 80% of current cost. The variable selling costs would be reduced to 40% of current cost. Required: What is the maximum amount the company should be willing to pay an outside supplier per unit for the part?CVP Analysis of Multiple Products Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Alo expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows: Sales Regular Model $14,400,000 Deluxe Model $12,240,000 Total $26,640,000 Less: Variable costs 8,640,000 7,344,000 Contribution margin $5,760,000 $4,896,000 15,984,000 $10,656,000 Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin $4,560,000 $3,936,000 $8,496,000 Less: Common fixed costs 1,510,400 Operating income $6,985,600 Required: 1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit. Regular models Deluxe models units units
- Question 9Company J sells a product in two models. The basic model has a contribution margin per unit of $5. The deluxe model has a CM per unit of $12. Total fixed costs for the year are $100,000. Which of the following sales mixes can Company J sell to break even? Basic model: 8,000 units; deluxe model: 4,500 units Basic model: 8,000 units; deluxe model: 5,000 units Basic model: 7,500 units; deluxe model: 5,000 units Basic model: 7,700 units; deluxe model: 5,200 unitsProblem 23-3B Sales mix strategies P3 Sung Company produces two models of its product with the same machine. The machine has a capacity of 200 hours per month. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Standard $60 20 $40 1 hour 550 units Pro $80 30 $50 2 hours 175 units Required 1. Determine the contribution margin per machine hour for each model. 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? 3. Assume the maximum demand for the Standard model is 180 units (not 550 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month?Chapter 7 Problem Solution 1 Please select the correct answer and solve and explain. "Goodstone Tire Corp sells tires for $90 each. Per unit costs associated with producing and selling the tires are: Direct Materials $35 Direct Labor $10 Factory Overhead $20 The variable portion of the factory overhead is $8 per unit. A foreign company wants to purchase 1,000 tires for $65 each. Assuming Goodstone has excess capacity: 1) The incremental profit from special order will be $12,000 2) The incremental loss from the special order will be $25,000 3) The will be no incremental loss or profit from the special order
- Problem 4 Bexter Labs produces three products: A, B, and C. Bexter can sell up to 3000 units of product A, up to 2000 units of product B, and up to 2000 units of product C. Each unit of product C uses two units of A and three units of B and incurs $5 in processing costs. Products A and B are produced from either raw material 1 or raw material 2. It costs $6 to purchase and process one unit of raw material 1. Each processed unit of raw material 1 yields two units of A and three units of B. It costs $3 to purchase and process a unit of raw material 2. Each processed unit of raw material 2 yields one unit of A and two units of B. The unit prices for the products are A, $5; B, $4; C, $25. The quality levels of each product are: A, 8; B, 7; C, 6. The average quality level of the units sold must be at least 7. Determine how to maximize Bexter's profit.CVP Analysis of Multiple Products Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Alo expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model Total Sales $14,400,000 $12,060,000 $26,460,000 Less: Variable costs 8,640,000 7,236,000 15,876,000 Contribution margin $5,760,000 $4,824,000 $10,584,000 Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin $4,560,000 $3,864,000 $8,424,000 Less: Common fixed costs 1,838,400 Operating income $6,585,600 Required: 1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole…CVP Analysis of Multiple Products Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Alo expects to sell 100,000 regular models and 20,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model Total Sales $15,000,000 $13,400,000 $28,400,000 Less: Variable costs 9,000,000 8,040,000 17,040,000 Contribution margin $6,000,000 $5,360,000 $11,360,000 Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin $4,800,000 $4,400,000 $9,200,000 Less: Common fixed costs 1,588,800 Operating income $7,611,200 Required: 1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole…