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Ee.59

Ee.59

FINANCIAL ACCOUNTING
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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Ee.59.

 

Leach Finishing makes various metal fittings for the construction industry. Three of the fittings, models X-12, X-24, and X-30, require grinding on a patented machine of which Leach has only one. The cost of production information for the three products follow: X-12 $29 $ 14 18.0 Price per fitting Variable cost per fitting Units per hour of grinding The testing machine used for both models has a capacity of 2,870 hours annually. Fixed manufacturing costs are $484,000 annually. Required A Required B X-24 X-12 X-24 X-30 X-30 $45 $ 21 12.5 Required: a. Suppose that Leach Finishing can sell at most 55,600 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? b. Suppose that Leach Finishing can sell at most 15,300 units of any one fitting. How many units of each fitting should Leach Finishing produce annually? units units units Complete this question by entering your answers in the tabs below. $64 $38 10.0 Suppose that Leach Finishing can sell at most 55,600 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually?
Transcribed Image Text:Leach Finishing makes various metal fittings for the construction industry. Three of the fittings, models X-12, X-24, and X-30, require grinding on a patented machine of which Leach has only one. The cost of production information for the three products follow: X-12 $29 $ 14 18.0 Price per fitting Variable cost per fitting Units per hour of grinding The testing machine used for both models has a capacity of 2,870 hours annually. Fixed manufacturing costs are $484,000 annually. Required A Required B X-24 X-12 X-24 X-30 X-30 $45 $ 21 12.5 Required: a. Suppose that Leach Finishing can sell at most 55,600 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? b. Suppose that Leach Finishing can sell at most 15,300 units of any one fitting. How many units of each fitting should Leach Finishing produce annually? units units units Complete this question by entering your answers in the tabs below. $64 $38 10.0 Suppose that Leach Finishing can sell at most 55,600 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually?
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