Need help Newton Enterprises can produce and sell only one of the followingtwo products:Product Machine Hours Required Contribution Margin Per UnitA4B2$36$22If the company has a machine capacity of 5,000 hours, what is thetotal contribution margin of the product it should produce tomaximize net income?a) $44,000b) $60,000c) $45,000d) $55,000

The question requires the determination of the contribution margin. The contribution margin can be…

Answered: Newton Enterprises can produce and sell…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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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. 120
A 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. $150
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Johnson Plumbing's fixed costs are $700,000 and the unit contribution margin is $17. What amount of units (rounded to a whole number) must be sold in order to realize an operating income of $100,000? a.58,882 b. 5,000 c.47,059 d.41,176
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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?
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.
R company can produce 1,000 of finished goods units through following costs: Direct material Direct labor Variable overhead Fixed overhead The company can buy these 1,000 units from outside for $170,000. Fixed cost of $19,250 is avoidable if units are purchased from outside. If the company will produce the goods, then what will be the cost savings? Answer * O O A B с $82,000 $33,500 $27,000 $19,250 D
A
Vaughn Manufacturing's contribution margin is $20 per unit for Product A and $35 for Product B. Product A requires 2 machine hours and Product B requires4 machine hours. How much is the contribution margin per unit of limited resource for each product? A B $6.67 $10.00 $8.75 $30.00 $6.67 $30.00 $8.75 $10.00

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