FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL. Contribution margin per unit is determined as follows: MICHAEL GABRIEL Revenue P 130 P 80 Variable costs (70)_(38) Contribution margin 60 42 Total demand for MICHAEL is 8,000 units; and for GABRIEL, 16,000 units. Machine hours is a scarce resource. Only 42,000 machine hours are available during the year. MICHAEL requires 6 machine hours per unit while GABRIEL requires 3 machine hours per unit. How many units of MICHAEL should FAUSTINO Inc. produce?

FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL. Contribution margin per unit is determined as follows: MICHAEL GABRIEL Revenue P 130 P 80 Variable costs (70)_(38) Contribution margin 60 42 Total demand for MICHAEL is 8,000 units; and for GABRIEL, 16,000 units. Machine hours is a scarce resource. Only 42,000 machine hours are available during the year. MICHAEL requires 6 machine hours per unit while GABRIEL requires 3 machine hours per unit. How many units of MICHAEL should FAUSTINO Inc. produce?

Name: Please help me with show all calculation thanku FAUSTINO Inc. manufact
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Description: Please help me with show all calculation thanku FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL.Contribution margin per unit is determined as follows:MICHAEL GABRIELP 130 P 80RevenueVariable costs (70)_(38)Contribution margin 60 42Total

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.
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Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profits increase if 200 more hours of machine time can be obtained?
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