Question 3.4 If the company believes that there is sufficient demand for up to 10,400 Breeze and 7,200 Storm cooling fans each year, how many Breeze cooling fans should be manufactured in order to maximise profits?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Question 3.4**

If the company believes that there is sufficient demand for up to 10,400 Breeze and 7,200 Storm cooling fans each year, how many *Breeze* cooling fans should be manufactured in order to maximise profits?

[Answer box]

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**Question 3.5**

If the company believes that there is sufficient demand for up to 10,000 Breeze and 7,200 Storm cooling fans each year, how many *Storm* cooling fans should be manufactured in order to maximise profits?

[Answer box]

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*Note*: The questions are part of an educational exercise focusing on manufacturing and maximizing profits based on estimated demand. No graphs or diagrams accompany the text.
Transcribed Image Text:**Question 3.4** If the company believes that there is sufficient demand for up to 10,400 Breeze and 7,200 Storm cooling fans each year, how many *Breeze* cooling fans should be manufactured in order to maximise profits? [Answer box] --- **Question 3.5** If the company believes that there is sufficient demand for up to 10,000 Breeze and 7,200 Storm cooling fans each year, how many *Storm* cooling fans should be manufactured in order to maximise profits? [Answer box] --- *Note*: The questions are part of an educational exercise focusing on manufacturing and maximizing profits based on estimated demand. No graphs or diagrams accompany the text.
**Summer Enterprises:** Production Data for "Breeze" and "Storm" Cooling Fans

**Selected Data for Each Product:**

| **Item**                        | **Breeze** | **Storm** |
|--------------------------------|-----------|-----------|
| Sales price per unit           | $200      | $300      |
| Direct materials per unit      | $60       | $70       |
| Direct labor per unit          | $30       | $35       |
| Variable overhead per unit     | $10       | $15       |
| Direct labor hours per unit    | 2         | 3         |

**Additional Information:**

- There is a maximum of 24,000 direct labor hours available each year.
Transcribed Image Text:**Summer Enterprises:** Production Data for "Breeze" and "Storm" Cooling Fans **Selected Data for Each Product:** | **Item** | **Breeze** | **Storm** | |--------------------------------|-----------|-----------| | Sales price per unit | $200 | $300 | | Direct materials per unit | $60 | $70 | | Direct labor per unit | $30 | $35 | | Variable overhead per unit | $10 | $15 | | Direct labor hours per unit | 2 | 3 | **Additional Information:** - There is a maximum of 24,000 direct labor hours available each year.
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