Edge Company produces two models of its product with the same machine. The machine has a capacity of 164 hours per month. The following information is available. StandardDeluxeSelling price per unit$ 190 $ 220 Variable costs per unit80 132 Contribution margin per unit$ 110 $ 88 Machine hours per unit1hour2hoursMaximum unit sales per month550units200unitsRequired: ## Contribution Margin AnalysisThis document provides a structured approach to determine the contribution margin for different product models. It is divided into several sections, each addressing specific analytical questions.### Section 1: Contribution Margin per Machine Hour- **Objective**: Determine the contribution margin per machine hour for each model.- **Details**: - A table is provided with the column headers: "Standard" and "Deluxe". - Rows are labeled as "Contribution margin per unit" and "Contribution margin per machine hour". - Blank fields are present for input data.### Section 2: Units Production for Maximum Profitability- **Objective**: Determine the optimal number of units to produce for maximum profitability and calculate the total contribution margin.- **Details**: - A table is provided with the column headers: "Standard", "Deluxe", and "Total". - Rows include: - "Hours dedicated to the production of each product" - "Units produced for most profitable sales mix" - "Contribution margin per unit" - "Total contribution margin" - Spaces are left empty for data entry.### Section 3: Production Adjustment for Standard Model- **Objective**: Calculate production and contribution margin under conditions where the maximum demand for the Standard model is 80 units (not 550 units).- **Details**: - The same table structure is used as in Section 2, with headers "Standard", "Deluxe", and "Total". - Rows are identical, covering: - "Hours dedicated to the production of each product" - "Units produced for most profitable sales mix" - "Contribution margin per unit" - "Total contribution margin" - Data fields are prepared for user input.This layout facilitates a clear understanding of how production decisions impact financial outcomes, and enables easy comparison between different scenarios for better decision-making.

The product providing highest contribution margin per hour is more profitable and hence, in case of…

dge Company produces two models of its product with the same machine. The machine has a capacity of 164 hours per month. The following information is available. Standard Deluxe Selling price per unit $ 190 $ 220 Variable costs per unit 80 132 Contribution margin per unit $ 110 $ 88 Machine hours per unit 1 hour 2 hours Maximum unit sales per month 550 units 200 units Required:

dge Company produces two models of its product with the same machine. The machine has a capacity of 164 hours per month. The following information is available. Standard Deluxe Selling price per unit $ 190 $ 220 Variable costs per unit 80 132 Contribution margin per unit $ 110 $ 88 Machine hours per unit 1 hour 2 hours Maximum unit sales per month 550 units 200 units Required:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

	Standard	Deluxe
Selling price per unit	$ 190		$ 220
Variable costs per unit	80		132
Contribution margin per unit	$ 110		$ 88
Machine hours per unit	1	hour	2	hours
Maximum unit sales per month	550	units	200	units

Similar questions

jagdish
i need the answer quickly
I could use a hand with this
Please help me with show all calculation thanku
Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 120.00 $ 87.00 Direct materials per unit $ 65.20 $ 51.00 Direct labor per unit $ 11.20 $ 8.00 Direct labor-hours per unit 1.4 DLHs 1.0 DLHs Estimated annual production and sales 30,000 units 65,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $ 2,033,000 Estimated total direct labor-hours 107,000 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing…
SAMMI Manufacturing has two divisions. Division A makes a part with the following characteristics: Production capacity in units 15,000 units Selling price to outside customers .. Variable cost per unit........ £25 £18 £60,000 Total fixed costs Division B, of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of £24 each. Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division B continues to purchase parts from an outside supplier rather than from Division A, the company as a whole will be: a. b. C. d Better off by £15,000 each period. Worse off by £10,000 each period. Worse off by £30,000 each period. Worse off by £35,000 each period.
CVP single product; comprehensiveBeantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual production and sales are 960,000 baseballs. Costs for each baseball are as follows:Direct material$2.00Direct labor1.25Variable overhead0.50Variable selling expenses0.25Total variable cost$4.00Total fixed overhead$1,250,000a. Calculate the unit contribution margin in dollars and the contribution margin ratio for the company.Note: Round percentage to two decimal places (for example, round 32.5555% to 32.56%).Unit contribution margin in dollars $AnswerContribution margin ratio Answer%\\n
FRANCORP sells two products. Products M N Selling price per unit $80 $60 Less variable expenses per unit $46 $40 Contribution margin per unit $34 $20 Current demand per week (units) 2,100 2,400 Processing time required on machine XYZ per unit 2 min. 1 min. Machine XYZ is a constrained resource and is being used at 100% capacity. Machine XYZ has a capacity of 3,000 minutes per week. Assuming FRANCORP wants to maximize its total contribution margin, how much of each product should it produce? a. 2400 units of N and 300 units of M b. 300 units of N and 2100 units of M c. 1200 units of N and 1050 units of M d. 2400 units of N and 0 units of M
d
i need the answer quickly
Subject:- accounting
Answer in text