Please help me James' Rockers Co. manufactures two models, Standard and Premium. Weekly demand is 180 units of the Standard Model and 100 units of the Premium Model. The following per unit data apply:Selling price per unitVariable expenses per unitTotal fixed expenses per unitNumber of machine hours required per unitO 140 units of Standard and 80 units of PremiumO 150 units of Standard and 75 units of PremiumStandardO 180 units of Standard and 60 units of PremiumO 200 units of Standard and 50 units of Premium$40$22Machine hours are the constrained resource. There are only 600 machine hours available per week. How many units of each model should James produce per week in order to maximize profits?$122Premium$60$40$44

The contribution margin is the difference between the sales and variable costs. The net income is…

Answered: James' Rockers Co. manufactures two…

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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Helena Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $45.00 $54.00 Variable costs $29.80 $30.20 Machine hours 0.40 0.70 Compute the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour
Tamarisk Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Selling price Variable costs Machine hours Product Basic $44.00 $20.00 0.50 Deluxe $52.00 $24.00 0.70 Calculate the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic $ Deluxe
Cube Industries sells three products-P, Q and R. Here are data regarding these three products: Product Q Annual customer demand, in units Selling price, per unil Variable costs, per unit Direct labor hours to produce one unit O $17 per hour O $18 per hour O $19 per hour O $21 per hour Product P O None of the above 525 units $660 $280 20 hours 450 units $940 $515 25 hours Product R 600 units Cube's current capacity is 18,300 direct labor hours per year. How much should Cube be willing to pay per direct labor hour to acquire additional capacity? $370 $160 10 hours
Ivanhoe Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Selling price Variable costs Machine hours Product Basic $45.00 $23.00 0.50 Deluxe $56.00 $26.60 0.70 Calculate the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic $ Deluxe
Driver Company manufactures two products. Data concern-ing these products are shown below: Direct TotalLabor ManufacturingHours OverheadHighest observed level . . . . . . . 6,000 $17,000Lowest observed level . . . . . . . . 4,000 14,000 Product A Product BTotal monthly demand (in units). . 1,000 200Sales price per unit . . . . . . . . . $400 $500Contribution margin ratio. . . . . 30% 40%Relative sales mix . . . . . . . . . . . 80% 20%If fixed costs are equal to $320,000, what amount of totalsales revenue is needed to break even?a. $914,286. c. $320,000.b. $457,143. d. $1,000,000.
Crane Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $42.00 $52.00 Variable costs $20.40 $24.80 Machine hours 0.60 0.80 A. Compute the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour $ $ B. Calculate total contribution margin if the additional 1,010 hours are:(1) Divided equally between the products. Basic Deluxe Total Contribution margin $ $ $ (2) Allocated entirely to the product identified above. Basic Deluxe Total Contribution margin $ $ $
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:
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 1,100 units and of Product N0 is 400 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product R3 1,100 10.0 11,000 Product N0 400 5.0 2,000 Total direct labor-hours 13,000 The direct labor rate is $20.60 per DLH. The direct materials cost per unit is $211.00 for Product R3 and $287.00 for Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product R3 Product N0 Total Labor-related DLHs $ 40,636 11,000 2,000 13,000 Production orders orders 65,880…
SIMPly Power Inc., manufactures and sells two products: Product V9 and Product B1. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output is shown below: Expected Production Direct Labour-Hours Per Unit Total Direct Labour-Hours Product V9 300 5.0 1,500 Product B1 800 3.0 2,400 Total direct labour-hours 3,900 The direct labour rate is $27.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product V9 $176.90 Product B1 $262.80 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product V9 Product B1 Total Labour-related DLHs $94,848 1,500 2,400 3,900 Machine setups…
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 66.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 86.00 25.80 25.80 51.60 $34.40 Required 1 Required 2 40% Required 3 18.00 31.50 49.50 $16.50 25% The company estimates it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Contribution margin per pound of the constraining resource C $76.00 Complete…
Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 4 1,600 Product P8 800 2 1,600 Total direct labor-hours 3,200 The direct labor rate is $31.10 per DLH. The direct materials cost per unit is $197.60 for Product W2 and $134.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 212,576 1,600 1,600 3,200 Production orders orders 17,938 420 320 740 Order size MHs 236,686 3,820 3,620 7,440 $ 467,200 If the company…
An entry light has a total cost of $125 per unit, of which 80 is product cost

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