Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $27 $22 Machine hours needed per unit 3 hours 2 hours The company can only perform 14,500 machine hours each period, due to limited skilled labor and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? A. $145,000 B. $149,750 C. $159,500 D. $174,000

Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $27 $22 Machine hours needed per unit 3 hours 2 hours The company can only perform 14,500 machine hours each period, due to limited skilled labor and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? A. $145,000 B. $149,750 C. $159,500 D. $174,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

See similar textbooks

Similar questions

Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit Machine setups needed unit $130 $120 per 10 setups 8 setups The company can only perform 65,000 machine setups each period due to limited skilled labour, and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period?
Consider the following production and cost data for two products, Big and Little: Big Little Demand in units 6,000 10,000 Contribution margin per unit $24 $18 Machine-hours needed per unit 2 ΜΗ 3 ΜΗ Labor hours needed per unit 6 DLH 4 DLH The company has 36,000 direct labor hours available each period. What is the largest possible total contribution margin that can be realized each period? O $162,000 $144,000 O $180,000 O $288,000
Please help me
Consider the following production and cost data for two products, Big and Little: Big Little Demand in units 6,000 10,000 Contribution margin per unit $24 $18 Machine-hours needed per unit 2 MH З МН Labor hours needed per unit 6 DLH 4 DLH The company has 36,000 direct labor hours available each period. What is the largest possible total contribution margin that can be realized each period? O $144,000 O $162,000 O $180,000 O $288,000
Sage Corporation manufactures two products with the following characteristics. Unit Contribution Machine Hours Margin Required for Production Product 1 $44.25 0.15 hours Product 2 $35.50 0.10 hours If Sage's machine hours are limited to 2,000 per month, determine which product it should produce. Product 1 Product 2 $ Contribution margin per unit of limited resource Sage Corporation should produce
Consider the following production and cost data: Product Q Product P Product K Contrib margin per unit $28 $30 $32 Machine minutes needed per unit 4 3 5 A total of 15,000 machine minutes are available each period.There is unlimited demand for each product.What is the largest possible total contribution margin that can be realized each period?
Please provide correct solution
see attached question
Please Solve this MCQs Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.35 Direct labor $ 4.30 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 26,000 Sales commissions $ 0.80 Variable administrative expense $ 0.90 Fixed selling and administrative expense $ 6000 If the selling price is $22.10 per unit, the contribution margin per unit sold is closest to: $4.85 $3.15 $10.45 $7.15
Please provide Solutions with explanation