Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company currently hasa shortage of machine hours since one of its two machines is down; only 360 hours are available this month. The selling prices, costs,labor requirements, and demand for the three products are as follows:Sales priceVariable cost per unitMachine hours per unitDemand (units)Large Mouth (Product A)$ 23.00$ 12.500.75348Required AComplete this question by entering your answers in the tabs below.Small Mouth(Product B)$9.00$5.000.25448Required:a. In what order should Hydroflask prioritize production of the products?b. How many of each product should be produced while the machine is down to maximize profit?c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources?Required B Required CIn what order should Pasadena prioritize production of the products?< Required AMini Mouth(Product C)$29.00$ 14.001164Required B >

The contribution margin per scarce resource is determined to find the optimal mix of production. The…

Answered: Hydroflask water bottles produces three…

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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Global GPS industries assembles its GPS systems with the following costs. Each or requires one computer system and 4 batteries. Computer systems cost $140 each, and Batteries are $2.50 each. Global is able to reliably obtain computers as needed and does not maintain them in inventory. However, batteries are stocked in inventory sufficient to produce 20% of the following month's expected production. Planned production is as follows: January February March April 24,000 systems 39,750 systems 23,850 systems 25,000 systems BB batter Compute No end/No Required: Prepare a direct material purchasing plan for January, February, and March based on the above facts.
Ashvin
Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Costs Reuben's Deli cost data Amounts Materials Labor Variable overhead Fixed overhead Increments $0.24 per roll 0.40 per roll 0.16 per roll 0.20 per roll A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be?
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
B & B makes a single product which sells for $20 and for which there is a great demand. The variable cost comprises: $ Direct material 4 Direct labour (2 hours) 6 Variable overhead 2 Total variable cost 12 The workers are currently operating at full capacity and no extra hours is available. A customer approached B & B with a request for the manufacture of a special order for which he is willing to pay $5500. The costs of the special order would be $2000 for direct materials, and 5000 labour hours will be required. Advise B & B whether the order should be accepted.
OutsourcingTuff Tach produces pickup truck bumpers that are sold on a wholesale basis to new car retailers. The average bumper sales price is $170. Normal annual sales volume is 300,000 units, which is the company’s maximum production capacity. At this capacity, the company’s per-unit costs are as follows: Direct material $53.00 (including mounting hardware @ $15 per unit) Direct labor 17.00 Overhead (2/3 is fixed) 45.00 Total $115.00 A key component in producing bumpers is the mounting hardware used to attach the bumpers to the vehicles. Birmingham Mechanical has offered to sell Tuff Tach as many mounting units as the company needs for $20 per unit. If Tuff Tach accepts the offer, the released facilities currently used to produce mounting hardware could be used to produce an additional 4,800 bumpers. What alternative is more desirable and by what amount? (Assume that the company is currently operating at its capacity of 300,000 units.)Note: Do not use a negative…
Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 31,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Materials $0.24 per roll Labor 0.39 per roll Variable overhead 0.16 per roll Fixed overhead 0.20 per roll A potential supplier has offered to sell Reuben the rolls for $0.89 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? decline in profit if he buys the rolls. Reuben would see a $
A corporation makes several products. Because of a recent lack of skilled workers, the corporation has had a shortage of available labor hours. The following per unit data pertains to the related products: Selling price Variable cost Labor hours required Multiple Choice $12,000 The company only has 1,800 labor hours available next month. The company can only sell 800 units of each product a month. What is the maximum amount of contribution margin that it can generate next month? $19,000 $19,600 LO $30 $20 1 $19,800 ES $80 $40 6 CH $42 $20 2
Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $58 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 44% of direct labor cost. The total unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $28.00 Direct labor 17.00 Factory overhead (44% of direct labor) 7.48 Total cost per unit $52.48 If Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs. a. Prepare a differential analysis dated February 24 to determine whether the company should Make Carrying Case (Alternative 1) or Buy Carrying Case (Alternative 2). If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you…
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $38, 400. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 $70 Variable cost 30 42 Contribution margin $10 $28 Number of units 1,000 500 Required: If required, round your final answers to nearest whole value. 1. Compute the number of vases and the number of figurines that must be sold for the company to break even. Break - even vases fill in the blank 1 units Break - even figurines fill in the blank 2 units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5, 280 per year to total fixed cost. If the upgrade is successful, the projected sales of vases will be 2,000, and figurine sales will increase to 1,000 units. What is the new break -…
Ivanhoe's Water World is distributing replacement water coolers in the Montreal area for $160 per cooler. Ivanhoe's fixed costs are equal to $65,875 per month, and the Ivanhoe's accounting staff has calculated the monthly break-even in units to be 775. (a) Your answer is incorrect. Given this information, compute the variable cost per unit and the contribution margin per unit. Variable cost $ Contribution margin $ +A per unit per unit SUPPORT
Sunland Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: Sales Variable costs Fixed costs Labor hours per unit Monthly demand in units A $ 3.00 $ 1.20 $ 0.50 0.75 hours 700 B $ 5.00 $ 3.40 $ 1.00 1.25 hours 650 C $ 13.00 $ 7.00 $ 3.50 2.00 hour 250 The company has only 1,600 direct labor hours available to commit to production of any new products. How many of each product should Sunland Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)

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