Logan Company produces two products, Standard and Premier. Logan can sell all of the Standard and Premier products it can produce, but it has limited production capacity. Machine hours per unit for Standard is 2 hour and for Premier is 3.0 hours. The company has 220,320 machine hours available. Contribution margin per unit is $24 for Standard and $30 for Premier. What is the total contribution margin if Logan chooses the most profitable sales mix? Multiple Choice $3,710,000. $4,490,000. $2,530,000. $2,643,840.

Logan Company produces two products, Standard and Premier. Logan can sell all of the Standard and Premier products it can produce, but it has limited production capacity. Machine hours per unit for Standard is 2 hour and for Premier is 3.0 hours. The company has 220,320 machine hours available. Contribution margin per unit is $24 for Standard and $30 for Premier. What is the total contribution margin if Logan chooses the most profitable sales mix? Multiple Choice $3,710,000. $4,490,000. $2,530,000. $2,643,840.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
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Logan Company produces two products, Standard and Premier. Logan can sell all of the Standard and Premier products it can produce, but it has limited production capacity. Machine hours per unit for Standard is 4 hour and for Premier is 6.0 hours. The company has 226,800 machine hours available. Contribution margin per unit is $24 for Standard and $30 for Premier. What is the total contribution margin if Logan chooses the most profitable sales mix? Multiple Choice $1,760,000. $1,360,800. $1,910,000.$2,310,000. $1,300,000. Please don't give solution in image
Logan Company produces two products, Standard and Premier. Logan can sell all of the Standard and Premier products it can produce, but it has limited production capacity. Machine hours per unit for Standard is 2 hour and for Premier Is 3.0 hours. The company has 220,320 machine hours available. Contribution margin per unit is $24.00 for Standard and $30.00 for Premier. What is the most profitable sales mix for Logan Company? Multiple Choice О 73,440 Standard units and 24.480 Premier units. 18,360 Standard units and 61,200 Premier units. 110,160 Standard units and O Premier units.
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