Question 1 Mallory Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Mallory estimates it could sell 600 tents per month and 600 sleeping bags per month. Following information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item O $14,000 O$13,550 Tent $19,500 $13,765 $68.00 49.50 $18.50 1.1 Sleeping Bag $43.00 29.00 $14.00 Mallory has 800 machine hours available each month. If Mallory allocates its production capacity between the tents and sleeping bags so that it maximizes the company contribution margin, what will the contribution margin be? .8

Question 1 Mallory Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Mallory estimates it could sell 600 tents per month and 600 sleeping bags per month. Following information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item O $14,000 O$13,550 Tent $19,500 $13,765 $68.00 49.50 $18.50 1.1 Sleeping Bag $43.00 29.00 $14.00 Mallory has 800 machine hours available each month. If Mallory allocates its production capacity between the tents and sleeping bags so that it maximizes the company contribution margin, what will the contribution margin be? .8

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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