JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 $ 90.00 $ 66.00 $ 80.00 Selling price Variable expenses: Direct materials 27.00 18.00 9.00 27.00 31.50 47.00 Other variable expenses Total variable expenses Contribution margin 54.00 49.50 56.00 $36.00 $ 24.00 $ 16.50 25% Contribution margin ratio 40% 30% JSON-2603 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-2603 can earn per month using its 5,700 pounds of direct materials optimally? O $ 31,200

JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 $ 90.00 $ 66.00 $ 80.00 Selling price Variable expenses: Direct materials 27.00 18.00 9.00 27.00 31.50 47.00 Other variable expenses Total variable expenses Contribution margin 54.00 49.50 56.00 $36.00 $ 24.00 $ 16.50 25% Contribution margin ratio 40% 30% JSON-2603 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-2603 can earn per month using its 5,700 pounds of direct materials optimally? O $ 31,200

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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JSON-6854 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio X5 $84.00 O $ 16,650 O$ 29,250 O $ 31,750 O $12,600 25.20 25.20 50.40 $ 33.60 40% 21.00 31.50 52.50 $17.50 25% Z9 $74.00 9.00 42.80 51.80 $ 22.20 30% JSON-6854 has enough demand to sell 750 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,400 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-6854 can earn per month using its 5,400 pounds of direct materials optimally?
KPR manufactures deals in various products. Relevant details of the products are as under: AWAXAYAZ Estimated annual demand (units)5000100070008000 Sales price per unit (Rs.)150180154175 Material consumption: Q (Rs)2729.524.529.75 Labor hours (Rs)5056.2543.7562.5 Variable overheads (based on labor cost) 70%80%10%90% Fixed overheads per unit (Rs.)10201416 Machine hours required: Processing machine hours 56810 The capacity utilization is as under:Hours Processing machine 150,000 RequiredCompute the number of units of each product that the company should produce in order tomaximize the profit. (B) KPR manufactures is considering a special order for 20 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is Rs 184 and its unit product cost is Rs140.00 as shown below: Direct materials . . . . . . . . . . . . . . . . . . . . Rs 81.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . 42.00Manufacturing…
Cost Relationships The following costs are for Optical View Inc., a contact lens manufacturer:Output in Units Fixed Costs Variable Costs Total Costs250 $4,750 $ 7,500 $12,250 300 4,750 9,000 13,750350 4,750 10,500 15,250400 4,750 12,000 16,750Required1. Calculate and graph total costs, total variable cost, and total fixed cost.2. For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost.3. Using the results from requirement 2, graph the per-unit total cost, per-unit variable cost, and per-unitfixed cost, and discuss the behavior of the per-unit costs over the given output levels.
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Benolt Company produces three products, A, B. and C. Data concerning the three products follow (per unit): Product A Selling price Less: Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution nargin $132.00 $92.48 $115.50 14.85 66.ee se.85 39.6e 24.75 44.55 69.30 39.60 79.20 $ 52.80 $23.10 $ 34.65 CH ratio 40 251 30x Demand for the company's products Is very strong. with far more orders each month than the company has raw materials avallable to produce. The same material is used in each product. The materlal costs $4.95 per klogram with a maximum of 8,230 kilograms avallable each month. Required: Calculate the contribution per constralned resource and prioritize the orders for products A, B and C. (Round your answers to 2 decimal places.) A Contribution per hour of labour used Priority Second Third First
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A Product B C $ 90.00 $ 52.00 $ 80.00 27.00 15.00 12.00 27.00 24.00 40.00 54.00 $ 36.00 40% 39.00 $ 13.00 52.00 $ 28.00 25% 35% The company estimates that it can sell 800 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 that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Answer is complete but not entirely correct. Complete this…
What type of cost exhibits the behavior shown below? Manufacturing Volume (Units) Cost Per Unit 50,000 $1.95 70,000 1.95 Select one: a. Discretionary fixed cost b. Step-fixed cost. c. Semivariable cost.d. Variable cost. e. Fixed cost
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Given the following cost and activity observations for Leno Enterprises'utilities, use the high-low method to calculate Leno's variable utilities cost permachine hour. Cost Machine HoursSeptember £4,100 22,000October £3,700 18,000November £3,900 19,000December £4,500 28,000a) £0.08b) £4.86c) £0.25d) £12.50