Q. 9) Salalah Foods make three different products, the detail ofwhich are given below:Product (code name)B4 B7 B2Selling price per unit (Omani Rial) 50 40 46Variable cost per unit (Omani Rial) 20 16 24Weekly demand (units)Machine time per unit (hours)50 40 6008 06 08Fixed cost is not affected by the choice of product because allMachine time isthree products use the same machine.limited to 148 hours a week.Required: Identify the combination of products which should bemanufactured if the business is to produce the highest profit andsuggest steps which could be taken that might lead to a higherlevel of contribution for the business?

Calculation of Requirement & Availability of Machine Hours : An explanation is given…

Q. 9) Salalah Foods make three different products, the detail of which are given below: Product (code name) Selling price per unit (Omani Rial) 50 40 46 Variable cost per unit (Omani Rial) 20 16 24 Weekly demand (units) Machine time per unit (hours) B4 B7 B2 50 40 60 08 06 08 Fixed cost is not affected by the choice of product because all hree products use the same machine. imited to 148 hours a week. Machine time is Required: Identify the combination of products which should be manufactured if the business is to produce the highest profit and suggest steps which could be taken that might lead to a higher level of contribution for the business?

Q. 9) Salalah Foods make three different products, the detail of which are given below: Product (code name) Selling price per unit (Omani Rial) 50 40 46 Variable cost per unit (Omani Rial) 20 16 24 Weekly demand (units) Machine time per unit (hours) B4 B7 B2 50 40 60 08 06 08 Fixed cost is not affected by the choice of product because all hree products use the same machine. imited to 148 hours a week. Machine time is Required: Identify the combination of products which should be manufactured if the business is to produce the highest profit and suggest steps which could be taken that might lead to a higher level of contribution for the business?

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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Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below: Selling price per unit Variable cost per unit Upholstery labor-hours per unit Recliner $ 1,128 $ 750 Required 1 Required 2 7 hours Required 3 Complete this question by entering your answers in the tabs below. Sofa $ 1,750 $ 1,200 10 hours Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth…
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An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: LN JQ RQ Selling price per unit $ 167.36 $ 303.39 $ 411.96 Variable cost per unit $ 136.00 $ 212.11 5 303.18 Minutes on the constraint 1.60 5.60 7.40 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places)
Subject: acounting
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Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below: Selling price per unit Variable cost per unit Upholstery labor-hours per unit Required 1 Required 2 Required 3 Recliner $ 1,184 $ 800 Complete this question by entering your answers in the tabs below. Additional contribution margin per hour Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for…
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Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below: Selling price per unit Variable cost per unit Upholstery labor-hours per unit Required: Recliner Sofa Love Seat $ 1,254 $ 750 $ 2,065 $ 1,250 $ 1,350 $ 900 9 hours 13 hours 5 hours 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $50 per hour. The management of Portsmouth is…
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