Gamma makes two models, Standard andPremium. Weekly demand is estimated to be 100units of the Standard Model and 70 units of thePremium Model. The following per unit data apply:Standard PremiumContribution margin per unit $18$20Number of machine-hours required426) The contribution per machine-hour for eachmodel is327) If there are 496 machine-hours available perweek, how many rockers of each model should beproduced to maximize profits?28) If there are 600 machine-hours available perweek, how many rockers of each model should beproduced to maximize profits?

Key factor - Whenever the resources are available in a limited quantity the production decision must…

Answered: Gamma makes two models, Standard and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of $21. The company's monthly fixed expenses are $29,400. A. What is the company's break-even point in units? Break-even units 600 units B. What is the company's break-even point in dollars? Break-even dollars $49.00 C. Construct a contribution margin income statement for the month of September when they will sell 800 units. Use a minus sign for a net loss if present. Income Statement Sales $56,000 Variable Costs -16,800 Contribution Margin $39,200 Fixed Costs -29,400 Net Income $9,800 D. How many units will Maple need to sell in order to reach a target profit of $44,100? New break-even units _____ units E. What dollar sales will Maple need in order to reach a target profit of $44,100? New break-even dollars $_____ F. Construct a contribution margin income statement for Maple that reflects $140,000 in sales volume. Income Statement
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage Contribution of Unit Margin per Unit Lens A Lens B Lens C Sales 24% 44 32 $ 50 42 55 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $189,000. 3. Determine how many units of each product must be sold to generate a profit of $66,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Units of Lens A Units of Lens B Units of Lens C Determine how many units of each product must be sold to generate a profit of $66,000. Note: Round your intermediate calculations to nearest whole number. Round your answers up to the next whole number. Round weighted-average contribution margin per unit to 2 decimal places. Units Units Units
Ptarmigan Company produces two products. Product A has a contribution margin of $48.80 and requires 8 machine hours. Product B has a contribution margin of $30.00 and requires 5 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places. Contribution margin per machine hour: Product A Product B Product $ $ is the most profitable.
Tel Systems manufactures 2 products TLA and BIT. TLA selling price is $20/unit and variable costs are $13/unit. BIT selling price is $22/unit and variable costs are $10/unit. TLA requires 2 machine hours and BIT 4 machine hours. Demand for TLA is 2,000 units and for BIT is 1,600 units. Tel Systems works 5,000 hours. What is the optimal sales mix? O a. 2,000 TLA and 250 BIT O b. 2,000 TLA and 1,250 BIT O c. 0 TLA and 1,250 BIT O d. 2,000 TLA and O BIT O e. not enough data to answer O f. 1,000 TLA and 1,000 BIT O g. 2,000 TLA and 1,600 BIT
Mukh
Your Company has a limit of 65,000 machine hours for the production. It produces three products, with costs and selling prices as follows: Products C Demand in units 20,000 18,000 15,000 Selling price per unit $30 $20 $15 CM ratios 35% 25% 60% 3. 3 MH per unit What is the maximum contribution margin Your Company can make?
A firm produces products X, Y and Z with contribution margins of $4, $5 and $10 respectively. The firm has only 5000 machine hours available for a particular period. Machine hours required for each of the products are 1, 1 and 4 hours respectively. Demand for the products is 1000 for X, 3000 for Y and 2000 for Z. How many units of product Z should be produced to maximize profit?
Help
Ken's Fish & Tackle manufactures two reel models, Standard and Premium. Weekly demand is estimated to be 110 units of the Standard Model and 72 units of the Premium Model. The following per unit data apply: Standard Premium Contribution margin per unit $24 $30 Number of machine - hours required 6 5 The contribution per machine - hour is:
6. Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are as follows: direct materials = $14; direct labour = $8; variable overhead = $3; sales commission is 10% of price. Its fixed monthly costs are $42,000. Required: 1. Using the above cost data, set up a monthly cost equation. 2. What is the company’s contribution margin percentage? (Round your answer to 2 decimal places.)
Ptarmigan Company produces two products. Product A has a contribution margin of $65.00 and requires 10 machine hours. Product B has a contribution margin of $46.20 and requires 7 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places. Contribution margin per machine hour: Product A $ Product B $ Product is the most profitable.
Edge Company produces two models of its product with the same machine. The machine has a capacity of 172 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 Required: Contribution margin per unit 1. Determine the contribution margin per machine hour for each model Product Cootribution Margin Standard $ 230 100 $130 Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 hour 650 units Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin $ 260 156 $ 104 2 hours 250 units Standard Contribution margin per machine hour 2 How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Total…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS