Q1 The annual demand in an industrial firm is 1500 units with a daily demand of 6 units but the firm can produce at a daily production rate of 8 units. The setup cost is $10, and the one to maintain is $2. What is the optimum production quantity?

Q1 The annual demand in an industrial firm is 1500 units with a daily demand of 6 units but the firm can produce at a daily production rate of 8 units. The setup cost is $10, and the one to maintain is $2. What is the optimum production quantity?

Name: Q1 The annual demand in an industrial firm is 1500 units with a daily
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Q1 The annual demand in an industrial firm is 1500 units with a daily demand of 6 units but the firm can produce at a daily production rate of 8 units. The setup cost is $10, and the one to maintain is $2. What is the optimum production quantity? Q1T

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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
Your Company produces three products, with costs and selling prices as follows: Product A Product B Product C Demand in units Selling price per unit Variable costs ratio Machine hours per unit 25,000 $30 60% 18,000 $20 25,000 $15 75% 40% 3 2 1 Your Company has a limit of 80,000 machine hours for the constrained resource. What is the maximum contribution margin Your Company can make? $225,000 $363,000 O $325,000 O $322,500
12.) If 12,500 units are sold, what is the total manufacturing overhead costs to support this production level? What is the manufacturing overhead cost per unit? 13.) If the selling price is P2,200 per unit, what is the contribution margin per unit sold?
fixed cost per unit is $1 when 100000 units are profuced and $2 per unit when 50,000 units are produced. what is the total fixed cost when nothing is produced? answer to the nearest whole dollar.
12. A company has produced the following information for a product it is about to launch: Units Variable production cost per unit Fixed production costs Variable selling cost per unit Fixed selling price Administrative costs What is the life-cycle cost per unit? A. £4.81 B. £4.32 C. £5.07 D. £5.48 4000 £4.30 £5,000 A. Prime cost +60% B. Marginal cost+40% C. Average Total Costs +10% D. Net margin of 20% on selling price. £0.70 £1700 £900 7000 £3.80 £5,500 £0.60 £1800 £900 9000 £3.20 £6,000 £0.60 £1800 £900 13. A product has a prime cost of £15, variable overhead of £5 per unit and fixed overheads of £8 per unit. Which pricing policy gives the highest price?
Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit Machine minutes needed per unit $120 10 minutes $112 8 minutes A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? Multiple Choice $840,000 $780,000 $720,000
Consider the following production and cost data for two products, H and C: Product H $120 10 minutes Product C $112 8 minutes Contribution margin per unit Machine minutes needed per unit A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? Multiple Choice O $780,000 $1,560,000 $840,000 $720,000
HH Aaron Company is planning to sell Product X for $80 per unit. Variable costs are $50 a unit and fixed costs are $ 150,000. What must total sales be in order to break even? 800,000 500,000 400,000 900,000
Your Company has a limit of 65,000 machine hours for the production. It produces three products, with costs and selling prices as follows: Products C Demand in units 20,000 18,000 15,000 Selling price per unit $30 $20 $15 CM ratios 35% 25% 60% 3. 3 MH per unit What is the maximum contribution margin Your Company can make?
Manufacturing costs for product X include direct materials $18 per unit, direct labor $4 per unit, variable overhead $2 per unit, and fixed overhead $3 per unit, for a total of $27 per unit. If production volume is increased by 10 units, how much will total manufacturing costs change in the short term? Assume that the new production volume is in the relevant range. (hint: the total cost equation might be useful here) increase by $240 not enough information need to know the original volume increase by $220 increase by $250 O increase by $270
A firm produces products X, Y and Z with contribution margins of $4, $5 and $10 respectively. The firm has only 5000 machine hours available for a particular period. Machine hours required for each of the products are 1, 1 and 4 hours respectively. Demand for the products is 1000 for X, 3000 for Y and 2000 for Z. How many units of product Z should be produced to maximize profit?
Consider the following production and cost data for two products, Big and Little: Big Little Demand in units 8,000 10,000 Contribution margin per unit $24 $18 Machine-hours needed per unit 2 MH 3 MH Labor hours needed per unit 6 DLH 4 DLH The company has 36,000 direct labor hours available each period. What is the maximum number of Littles that should be made each period? O 10,000 O 4,000 O 9,000