KA.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.SmallMediumLargeUnit selling price$440$630$1,240Unit costs:Variable manufacturing(270)(290)(540)Fixed manufacturing(40)(140)(240)Fixed selling and administrative(90)(105)(140)Unit profit$40$95$320Demand in units110130110Machine-hours per unit4040110O A. small applianceOB. medium applianceOC. large applianceOD. both medium and large appliance

Small Appliance:Unit Profit: $35 ($440 - $270 - $40 - $90 - $40)This indicates a relatively lower…

Answered: K A.C. Tech Manufacturing Appliances…

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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Wildhorse Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Chairs O $9120 O $13080 O $10370 O $7320 $72.00 60.00 $12.00 1.60 Tables $92.00 75.00 $17.00 1.60 Wildhorse has 976 machine hours available each month. The demand for chairs is 580 units per month and the demand for tables is 360 units per month. If Wildhorse allocates its production capacity between the chairs and tables so that it maximizes the company's contribution margin, what will the total contribution margin be?
TB MC Qu. 3-46 (Algo) The Travel Pro Company sells two kinds... The Travel Pro Company sells two kinds of luggage. The company projected the following cost information for the two products: Rolling Bag 300 162 1,000 Unit selling price Unit variable cost Number of units produced and sold Multiple Choice 3,300 units The company's total fixed costs are expected to be $331,650. Based on this information, what is the combined number of units of the two products that would be required to break even with the projected sales mix? (Do not round your intermediate calculations. Round your final answer to the nearest whole unit.) 3,086 units 3,769 units $ $ None of these is correct. Carry-on Bag $ 150 $ 62 3,000
Oriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below: A1 A2 A3 Total Selling price per unit $200 $500 $1 000 Variable cost per unit $60 $250 $600 Expected unit sales (annual) 15,000 7,000 2,000 24,000 Sales mix 60 percent 30 percent 10 percent 100 percent Total annual fixed costs are $4,000,000. Assume the sales mix remains the same at all levels of sales. Required: SHOW YOUR WORKINGS FOR ALL SECTIONS How many units of each furniture type must be sold to break even?
LL Requlred Information The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Alpha $42 Beta $ 24 32 24 Direct materials Direct labor Variable manufacturing overhead Traceable Fixed manufacturing overhead Variable selling expenses Common fixed expenses 42. 26. 34 31. 34. 27. Total cost per unit $173 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 2 What is the company's total amount of common fixed expenses? Total common fixed expenses. ( Prev of 15 2 3 4 Next e to search TPL F4 F5
Pharoah Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Chairs O $11270 $11520 $10880 O $17390 $78.00 61.00 $17.00 1.60 Tables $95.00 77.00 $18.00 1.60 Pharoah has 1024 machine hours available each month. The demand for chairs is 610 units per month and the demand for tables is 390 units per month. If Pharoah allocates its production capacity between the chairs and tables so that it maximizes the company's contribution margin, what will the total contribution margin be?
Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market). Variable cost per unit $ 60 $ 44 Fixed costs per unit (based on capacity) Capacity in units $ 4 20,000 Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes. If the company's divisional managers are evaluated based their division's profits and Division A is currently selling 18,000 units on the outside market, what is Division A's lowest acceptable transfer price if it were to sell 4,000 units to Division B?
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Oriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below: A1 A2 A3 Total Selling price per unit $200 $500 $1 000 Variable cost per unit $60 $250 $600 Expected unit sales (annual) 15,000 7,000 2,000 24,000 Sales mix 60 percent 30 percent 10 percent 100 percent Total annual fixed costs are $4,000,000. Assume the sales mix remains the same at all levels of sales. Required: SHOW YOUR WORKINGS FOR ALL SECTIONS Calculate the weighted average unit contribution margin, assuming a constant sales mix.
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