Newton Enterprises can produce and sell only one of the following two products: Product Machine Hours Required Contribution Margin Per Unit A 4 B 2 $36 $22 If the company has a machine capacity of 5,000 hours, what is the total contribution margin of the product it should produce to maximize net income? a) $44,000 b) $60,000 c) $45,000 d) $55,000
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- Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150answer the question below and show your complete solution/computation
- What is the absorption cost per unit on these financial accounting question?AccountSheffield Corp.can produce and sell only one of the following two products: Contribution Oven Hours Required Margin Per Unit 0.2 $6 Muffins $7 0.3 Coffee Cakes The company has oven capacity of 3000 hours. How much will contribution margin be if it produces only the most profitable product? $90000. $60000. O $105000. o$70000.
- please solve the sub-parts to be solved. thanks Ziggy Creations makes and sells a single product. Individual product details are as follows: Selling price $ 45 Direct materials $20 Direct labour $10 Fixed Costs $480 000 Estimated sales 36 000 units Production capacity 40 000 units d) If Ziggy’s required a profit of $90 000, what level of sales dollars would be required? e) Variable costs are to increase by $5 per unit. If Ziggy’s wants to maintain a profit of $90,000, what will be the required sales volume? Can Ziggy’s achieve this new estimated sales volume?Can you help with CVP Drill # 19?3. Maxwell Company manufactures and sells three (3) product lines with contribution margin per unit and the required production time as follows: 12 Activity 2 *Property of STI Page 1 of 2 STI BM2021 см реr Machine hour per unit unit of product Product A P5.00 2.5 hours 3 hours 1 hour Product B 3.00 Product C 4.00 The company has a capacity of 20,000 machine hours a month. The market can absorb P4,000 units of product A, 6,000 units of B, and 10,000 units of C. a. Determine the contribution margin per hour of each product. b. What is the most profitable product line based on the contribution margin per machine hour? Justify your answer. c. Compute the maximum contribution margin for the month that will meet the conditions stated.