Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Selling price per unit Variable cost per unit Plastic injection moulding machine processing time required per unit Kgs of plastic pellets per unit Required: Ski Golf Fishing Guard Guard Guard $230 $310 $160 $190 $245 $115 11 min 7 kg 9 min 13 kg 10 min 14 kg 1-a. The total time available on the plastic injection moulding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? Selling price per unit Ski Guard Golf Guard Fishing Guard

Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Selling price per unit Variable cost per unit Plastic injection moulding machine processing time required per unit Kgs of plastic pellets per unit Required: Ski Golf Fishing Guard Guard Guard $230 $310 $160 $190 $245 $115 11 min 7 kg 9 min 13 kg 10 min 14 kg 1-a. The total time available on the plastic injection moulding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? Selling price per unit Ski Guard Golf Guard Fishing Guard

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Selling price per unit. Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Required 1 Complete this question by entering your answers in the tabs below. Required 2 Required: 1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? Required 1 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the…
bok int int rences Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below: Selling price per unit Variable cost per unit 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? Required 1 Required 2 Required 3 Required 4 Ski Guard Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Required: 1. If the total time available on the plastic injection molding machine is the constraint, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If a severe shortage of plastic pellets required the company to cut back production so much that its new constraint has become the total available pounds of plastic pellets, how much…
Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a variety of suits, it does not make the All- Body suit used by highly skilled swimmers. The market research department believes that a strong market exists for this type of suit. The department indicates that the All-Body suit would sell for approximately $100. Glven its experience, Leno believes the All-Body suit would have the following manufacturing costs. Direct materials $29 Directlabor 27 Manufacturing overhead 44 Total costs $100
Drone Concepts, Inc. (DCI) manufacturers a line of drones that are distributed to large retailers. The line consists of four models of drones. The following data is available regarding the models: DCI Selling Price Variable Cost Demand/Year Model per Unit per Unit (units) Model D1 $735 $115 1,535 Model D2 $515 $110 2,865 Model D3 $625 $105 3,535 Model D4 $765 $135 3,300 Drone Concepts is considering the addition of a fifth model to its line of drones. This model would be sold to retailers for $950. The variable cost of this unit is $415. The demand for the new Model D5 is estimated to be 2,000 units per year. Sixty percent of these unit sales of the new model is expected to come from other models already being manufactured by Drone Concepts (10 percent from Model D1, 30 percent from Model D2, 40 percent from Model D3, and 20 percent from Model D4). Drone Concepts will incur a fixed cost of $350,000 to add the new model to the line. Based on the preceding data, should DCI add the new…
Snow, Inc. makes three kinds of snowboards, but it has limited number of machine hours available to make them. Product line data are as follows: Wood Plastic Graphite Machine hours per unit 1.25 1.0 1.5 Selling price per unit P100 P120 P200 Variable mfg. cost per unit 45 50 100 Variable selling cost per unit 15 26 36 In what order should the snowboard product lines be produced? Wood, Plastic, then Graphite Plastic, Graphite, then Wood Graphite, Wood, then Plastic none of the above Group of answer choices 1 2 3 4
Snapware Systems produces commercial strength cleansing supplies. Two of its main products are window cleaner that uses ammonia, and floor cleaner that uses bleach. Information for the most recent period follows: Product Names Window Cleaner (ammonia) Floor Cleaner (bleach) Direct materials information: Standard ounces per unit 16 oz. 24 oz. Standard price per ounce $0.75 ? Actual quantity used per unit 20 oz. 22 oz. Actual price paid for material $1.00 $0.90 Actual quantity purchased and used 1,500 oz. 2,800 oz.. Price variance ? $300 U Quantity variance $1,500 U ? Total direct materials variance ? $678 F Number of units produced 500 600 What is the standard price for bleach? Select one: a. $0.88/oz. b. $1.09/oz. c. $1.14/oz. d. $0.79/oz. e. $0.92/oz.
es Mc Braw Hill *** ! Coram Audio makes wireless headphones. Each pair of headphones comes with a travel case. Since its founding, Coram has manufactured its own travel cases. Recently, Holmur Travel Gear (HTG), a local outfitter that manufactures and sells backpacks, tent cases, and so on, contacted Coram and proposed that they produce the headphone travel cases. Based on management experience, Coram's cost per travel case is as follows (based on annual production of 40,800 units). Q 1 N Direct materials Direct labor Variable overhead Fixed overhead Total HTG has offered to sell the case to Coram for $39 each. The total order would amount to 40,800 travel cases per year. Coram's management decides that they will make the switch to HTG cases if Coram can save at least $12,400 per year. Accepting the offer would eliminate annual fixed overhead of $77,520. Required: a. Prepare a schedule that shows the total differential costs. b. Should Coram continue to make the travel cases or buy…
Blossom makes swimsuits and sells them directly to retailers. Although Blossom has a variety of suits, it does not make the all-body suit used by highly skilled swimmers. The market research department believes that a strong market exists for this type of suit. It says the all- body suit would sell for approximately $118. Given its experience, Blossom believes the all- body suit would have the following manufacturing costs: Direct materials Direct labour Manufacturing overhead Total costs (a1) $26 30 48 $104 Assume that Blossom uses cost-plus pricing, and sets the price 25% above the product's costs. (Round answer to 2 decimal places, e.g. 15.25.) What would be the price charged for the all-body swimsuit?
Smoky Mountain Corporation makes two types of hiking boots the Xtreme and the Pathfinder. Data concerning these two product ines appear below: Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 120.00 $ 65.20 11.201 1.4 D 10,000 units Pathfinder $87.00 5 51.00 $8.00 1.0 65,000 unit The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $ 2,033,000 107,000 D Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity based costing system that would assign its manufacturing overhead to the following…
Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 116.00 $ 64.00 $ 12.00 $ 80.00 $ 52.00 $ 8.00 1.5 DLHS 1.0 DLHS 29,000 units 76,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: $ 1,912,000 119,500 DLHS Estimated total manufacturing overhead Estimated total direct labor-hours Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead…
Container Solutions produces plastic storage bins for household storage needs. 1(Click the icon to view additional information.) Sales prices and variable costs are as follows: 2(Click the icon to view the costs.) Read the requirements3. Requirement 1. Which product should Container Solutions emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Container Solutions Product Mix Analysis Regular Large Sales price per unit Variable cost per unit Contribution margin per unit Units per machine hour × × Contribution margin per machine hour Which product should Container Solutions emphasize? Why? Container Solutions should emphasize the production of (1) because this product has the higher (2) Requirement 2. To maximize profits, how many of each size bin…
Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a variety of suits, it does not make the All- Body suit used by highly skilled swimmers. The market research department believes that a strong market exists for this type of suit. The department indicates that the All-Body suit would sell for approximately $100. Given its experience, Leno believes the All-Body suit would have the following manufacturing costs. Direct materials Direct labor Manufacturing overhead Total costs (a1) Selling price $ eTextbook and Media $29 Save for Later 29 Assume that Leno uses cost-plus pricing, setting the selling price 26% above its costs. What would be the price charged for the All- Body swimsuit? 42 $100 Assistance Used Attempts: 0 of 3 used Submit Answer