Leach Finishing makes various metal fittings for the construction Industry. Three of the fittings, models X-12, X-24, and X-30, require grinding on a patented machine of which Leach has only one. The cost of production Information for the three products follow: X-12 Price per fitting Variable cost per fitting Units per hour of grinding The testing machine used for both models has a capacity of 2,810 hours annually. Fixed manufacturing costs are $482,000 annually. Required: a. Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? Required A Required B $28 $ 13 18.0 X-12 X-24 X-30 X-24 units units units b. Suppose that Leach Finishing can sell at most 14,850 units of any one fitting. How many units of each fitting should Leach Finishing produce annually? X-30 $44 $ 20 12.5 Complete this question by entering your answers in the tabs below. < Required A $63 $ 37 10.0 Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? Required B >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Leach Finishing makes various metal fittings for the construction industry. Three of the fittings, models X-12, X-24, and X-30, require
grinding on a patented machine of which Leach has only one. The cost of production information for the three products follow:
X-12
Required A Required B
Price per fitting
Variable cost per fitting
Units per hour of grinding
The testing machine used for both models has a capacity of 2,810 hours annually. Fixed manufacturing costs are $482,000 annually.
$28
$13
18.0
X-12
X-24
X-30
X-24
units
units
units
$ 44
$ 20
12.5
Required:
a. Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many units of each fitting model should Leach
Finishing produce annually?
b. Suppose that Leach Finishing can sell at most 14,850 units of any one fitting. How many units of each fitting should Leach Finishing
produce annually?
X-30
Complete this question by entering your answers in the tabs below.
$63
$ 37
10.0
< Required A
Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many
units of each fitting model should Leach Finishing produce annually?
Required B >
Transcribed Image Text:Leach Finishing makes various metal fittings for the construction industry. Three of the fittings, models X-12, X-24, and X-30, require grinding on a patented machine of which Leach has only one. The cost of production information for the three products follow: X-12 Required A Required B Price per fitting Variable cost per fitting Units per hour of grinding The testing machine used for both models has a capacity of 2,810 hours annually. Fixed manufacturing costs are $482,000 annually. $28 $13 18.0 X-12 X-24 X-30 X-24 units units units $ 44 $ 20 12.5 Required: a. Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? b. Suppose that Leach Finishing can sell at most 14,850 units of any one fitting. How many units of each fitting should Leach Finishing produce annually? X-30 Complete this question by entering your answers in the tabs below. $63 $ 37 10.0 < Required A Suppose that Leach Finishing can sell at most 55,000 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? Required B >
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