Per Unit K707 G582 78 S 44 Sales price 27 19 Variable costs 51 $ 25 Contribution margin 65.4% 56.8% Contribution margin ratio %24 %24

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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Question
100%
Per Unit
К707
G582
Sales price
78 S
44
27
19
Variable costs
51 S
25
Contribution margin
65.4%
56.8%
Contribution margin ratio
%24
%24
Transcribed Image Text:Per Unit К707 G582 Sales price 78 S 44 27 19 Variable costs 51 S 25 Contribution margin 65.4% 56.8% Contribution margin ratio %24 %24
Requirement 3. Division C also produces two product lines. Because the division can sell all of the product it can produce, Dennison is expanding the plant and needs to decide which product line to emphasize. To make this
decision, the division accountant assembled the following data:
E (Click the icon to view the Division C product data.)
After expansion, the factory will have a production capacity of 4,300 machine hours per month. The plant can manufacture either 28 units of K707s or 65 units of G582s per machine hour.
3a. Identify the constraining factor for Division C.
Division C's constraining factor is machine hours
3b. Prepare an analysis to show which product line to emphasize
K707
G582
Contribution margin per
Transcribed Image Text:Requirement 3. Division C also produces two product lines. Because the division can sell all of the product it can produce, Dennison is expanding the plant and needs to decide which product line to emphasize. To make this decision, the division accountant assembled the following data: E (Click the icon to view the Division C product data.) After expansion, the factory will have a production capacity of 4,300 machine hours per month. The plant can manufacture either 28 units of K707s or 65 units of G582s per machine hour. 3a. Identify the constraining factor for Division C. Division C's constraining factor is machine hours 3b. Prepare an analysis to show which product line to emphasize K707 G582 Contribution margin per
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