Marawi Corporation has 52,000 available machine hours and has a fixed overhead rate of P4 er hour. It is considering to produce two popular products with the following production and costs data: Costs if purchased from outside supplier Direct materials Direct labor Factory overhead at P9 per hour Annual demand in units Dragon Ball P 70 11 25 18 20,000 Samurai X P 105 Required: .. Assuming that there is no market limitation, which product should Marawi Corporation produce? 2. Considering the market limits, how would Marawi Corporation use its limited machine hours to maximize profit? 3. Assuming that the unit direct materials cost of Samurai X decreases to P10 and considering the market limit, how would the limited machine hours be used to maximize profit? 22 38 27 15,000
Marawi Corporation has 52,000 available machine hours and has a fixed overhead rate of P4 er hour. It is considering to produce two popular products with the following production and costs data: Costs if purchased from outside supplier Direct materials Direct labor Factory overhead at P9 per hour Annual demand in units Dragon Ball P 70 11 25 18 20,000 Samurai X P 105 Required: .. Assuming that there is no market limitation, which product should Marawi Corporation produce? 2. Considering the market limits, how would Marawi Corporation use its limited machine hours to maximize profit? 3. Assuming that the unit direct materials cost of Samurai X decreases to P10 and considering the market limit, how would the limited machine hours be used to maximize profit? 22 38 27 15,000
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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