Marley Corporation makes three products (X, Y, & Z) with the following characteristics:ProductsYXSelling price per unitVariable cost per unitMachine hours per unitZ$ 10$15 $20.$6 $ 10 $ 1024 10The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, how manyunits of each product should the company produce?Multiple Choice2,000 units of X, 500 units of Y, and 200 units of ZO units of X, 0 units of Y, and 200 units of ZO units of X, 500 units of Y, and 0 units of Z1,000 units of X, 0 units of Y, and 0 units of Z

Contribution margin means sales revenue over and above variable costs. In case of limited resources,…

Answered: Marley Corporation makes three products…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following information applies to the products of Thornton Company. Product Froduct Selling price per unit Variable cost per unit $17 $17 11 13 Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately Required a. One unit of Product A requires 2 hours of labor to produce, and one unit of Product B requires 4 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. b. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 11,000 units and 10,000 units, respectively. c. The maximum number of machine hours available is 46,000. Product A uses 2 machine hours, and Product B uses 10 machine hours. The company can sell all the products it produces. Complete this…
Blossom Corporation produces three products, Standard, Deluxe and Superior, with the following characteristics: Selling price per unit Variable cost per unit Contribution margin per unit Machine hours per unit Standard Deluxe Superior $20 14 $6 2 $22 17 $5 2 $21 O Standard first, Deluxe second, Superior third O Deluxe first. Standard second, Superior third O Superior first, Standard second, Deluxe third O Standard first, Superior second, Deluxe third 19 $2 2 The company has only 1810 machine hours available each period. If demand exceeds the company's capacity, in what sequence should orders for the three products be filled to maximize the company's total contribution margin?
Paul's Pumps manufactures three different product lines: Model A, Model B, and Model C. Plenty of market demand exists for all models.The table below reports the prices and costs per unit of each product. Model A Model B Model C Selling price $50 $60 $70 Direct materials costs $6 $6 $ 6 Direct labor costs ($12 per labor hour) $12 $12 $24 Variable support costs ($4 per machine hour) $4 $8 $8 Fixed support costs $10 $10 $10 Assuming that machine hours are limited (i.e., this is the constrained resource), which model is the most profitable to produce? Select one: a. Model B X b. Model A and B would be equally profitable c. Model A d. Model C
Your Company produces three products, with costs and selling prices as follows: Product A Product B Product C Demand in units Selling price per unit Variable costs ratio Machine hours per unit 25,000 $30 60% 18,000 $20 25,000 $15 75% 40% 3 2 1 Your Company has a limit of 80,000 machine hours for the constrained resource. What is the maximum contribution margin Your Company can make? $225,000 $363,000 O $325,000 O $322,500
Merlot Manufacturing Ltd makes three different products, the details of which are as follows: Product (code name) 167X 325Y 7422 Selling price per unit (£) 40 30 28 Variable cost per unit (£) 15 18 14 Weekly demand (units) 45 50 20 Skilled labour time per unit (hours) 3. Skilled labour time is limited to 200 hours a week. Which combination of products should be manufactured if the business is to produce the highest profit? Show your answer by filling out the table below. (Round up units of product 167X units of product 325Y units of product 742Z Enter any number or expression in each of the edit fields. 26
Ptarmigan Company produces two products. Product A has a contribution margin of $48.80 and requires 8 machine hours. Product B has a contribution margin of $30.00 and requires 5 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places. Contribution margin per machine hour: Product A Product B Product $ $ is the most profitable.
Blue Company developed the following information for its product: Per Unit Sales price $90 Variable cost 63 Contribution margin $27 Total fixed costs $1,215,000 Required:Answer the following independent questions and show computations using the contribution margin technique to support your answers. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000?
Your Company has a limit of 65,000 machine hours for the production. It produces three products, with costs and selling prices as follows: Products C Demand in units 20,000 18,000 15,000 Selling price per unit $30 $20 $15 CM ratios 35% 25% 60% 3. 3 MH per unit What is the maximum contribution margin Your Company can make?
A company is considering two alternative technologies for manufacturing a product. The cost data are shown below. Fixed Cost Variable Cost The breakeven volume is More than 400 units A $10,000 $30/unit Less than or equal to 200 units B $25,000 $5/unit More than 300 but less than or equal to 400 units O None of the options More than 200 but less than or equal to 300 units
I could use a hand with this
Vaughn Manufacturing can produce and sell only one of the following two products: Oven Contribution Hours Margin Per Required Unit Muffins 0.2 $8 Coffee Cakes 0.5 $5 The company has oven capacity of 3500 hours. How much will contribution margin be if it produces only the most profitable product? O $87500, O $56000. O $35000. O $140000.
Ma4. Please give only typed answer

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS