Pharoah Industries manufactures chairs and tables that are in high demand by localoffice furniture stores. Following is information for each of these products:Selling price per itemVariable cost per itemContribution margin per itemMachine hours per itemChairsO $11270$11520$10880O $17390$78.0061.00$17.001.60Tables$95.0077.00$18.001.60Pharoah has 1024 machine hours available each month. The demand for chairs is 610units per month and the demand for tables is 390 units per month. If Pharoah allocatesits production capacity between the chairs and tables so that it maximizes the company'scontribution margin, what will the total contribution margin be?

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: Selling price per item Variable cost…

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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K Clan Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow: Click the icon to view the price and cost data.) Clan Furniture has three sales representatives: Alfred, Bob, and Cait. Alfred sold 60 tables with 8 chairs each. Bob sold 70 tables with 6 chairs each. Cait sold 100 tables with 4 chairs each. Read the requirements. Sales representative: Alfred Bob Cait Net sales revenue $ 66,000 $ 70,000 $ 90,000 47,700 Variable costs Contribution margin 52,150 69,500 $ 18,300 $ 17,850 $ 20,500 Now calculate the contribution margin ratio for each sales representative. (Round to two decimal places-the nearest hundredth percent-X.XX%.) Contribution margin ÷ Net sales revenue = Contribution margin ratio Alfred $ 18,300 " ÷ 66,000 = 27.73 % Bob $ 17,850 ÷ $ 70,000 = 25.50 % 20,500 + $ 90,000 = 22.78 % Cait $ Requirement 2. Which sales representative has the highest contribution margin ratio? Explain why. is the sales representative with the…
Wildhorse Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Chairs O $9120 O $13080 O $10370 O $7320 $72.00 60.00 $12.00 1.60 Tables $92.00 75.00 $17.00 1.60 Wildhorse has 976 machine hours available each month. The demand for chairs is 580 units per month and the demand for tables is 360 units per month. If Wildhorse allocates its production capacity between the chairs and tables so that it maximizes the company's contribution margin, what will the total contribution margin be?
Drone Concepts, Inc. (DCI) manufacturers a line of drones that are distributed to large retailers. The line consists of four models of drones. The following data is available regarding the models: DCI Selling Price Variable Cost Demand/Year Model per Unit per Unit (units) Model D1 $735 $115 1,535 Model D2 $515 $110 2,865 Model D3 $625 $105 3,535 Model D4 $765 $135 3,300 Drone Concepts is considering the addition of a fifth model to its line of drones. This model would be sold to retailers for $950. The variable cost of this unit is $415. The demand for the new Model D5 is estimated to be 2,000 units per year. Sixty percent of these unit sales of the new model is expected to come from other models already being manufactured by Drone Concepts (10 percent from Model D1, 30 percent from Model D2, 40 percent from Model D3, and 20 percent from Model D4). Drone Concepts will incur a fixed cost of $350,000 to add the new model to the line. Based on the preceding data, should DCI add the new…
EOQ for a retailer. The Cloth Center sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags. The supplier for the denim cloth pays all incoming freight. No incoming inspection of the denim is necessary because the supplier has a track record of delivering high-quality merchandise. The purchasing officer of the Cloth Center has collected the following information: Annual demand for denim cloth 20,000 yards Ordering cost per purchase order P160 Carrying cost per year 20% of purchase costs Safety-stock requirements None Cost of denim cloth P8 per year The purchasing lead time is 2 weeks. The Cloth Center is open 250 days a year (50 weeks for 5 days a week).1. Calculate the EOQ for denim cloth.2. Calculate the number of orders that will be placed each year3. Calculate the reorder point for denimcloth.
Richardson Ski Racing (RSR) sells equipment needed for downhill ski racing. One of RSR's products is fencing used on downhill courses. The fence product comes in 150-foot rolls and sells for $215 per roll. However, RSR offers quantity discounts. The following table shows the price per roll depending on order size: Quantity Ordered To From 1 30 31 60 61 120 121 and up Price per Roll $215 $195 $175 $155 Click on the datafile logo to reference the data. DATA file (a) Use the XLOOKUP function with the preceding pricing table to determine the total revenue from these orders. Hint: Xlookup is an Excel function available in Excel 2021 and above and in Microsoft 360. VLOOKUP, in this case will result in the same answer. $ 32260 (b) Use the COUNTIF function to determine the number of orders in each price bin. From To Price per Roll Number of Orders 30 $215 40 31 60 $195 50 61 120 $175 60 121 and up $155 22 * * * *
Richardson Ski Racing (RSR) sells equipment needed for downhill ski racing. One of RSR's products is fencing used on downhill courses. The fence product comes in 150-foot rolls and sells for $215 per roll. However, RSR offers quantity discounts. The following table shows the price per roll depending on order size: From Quantity Ordered To 30 Price per Roll 1 31 60 61 120 121 and up $215 $195 $175 $155 Click on the datafile logo to reference the data. DATA file (a) Use the VLOOKUP function with the preceding pricing table to determine the total revenue from these orders. (b) Use the COUNTIF function to determine the number of orders in each price bin. From To Price per Roll Number of Orders 1 31 61 32 80 $215 $195 120 $175 121 and up $155 172 Hint(s) Check My Work
EOQ for a retailer. The Fabric World sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags. The supplier for the denim cloth pays all incoming freight. No incoming inspection of the denim is necessary because the supplier has a track record of delivering high-quality merchandise. The purchasing officer of the Fabric World has collected the following information:
Semen’s is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (x) is 135 units. The following is the BoM in indented form: ITEM DESCRIPTION USAGE X BRACKET ASSEMBLY 1 A WALL BOARD 4 B HANGER SUBASSEMBLY 2 D HANGER CASTING 2 E CERAMIC KNOB 2 C RIVIT HEAD SCREW 3 F METAL TONG 5 G PLASTIC CAP 2 BELOW IS A TABLE INDICATING CURRENT INVENTORY LEVELS ITEM X A B…
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Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows: Atlantic Wave Pacific Pounder Sales price $450 $400 Variable cost of goods sold per unit (167) (192) Manufacturing margin per unit $283 $208 Variable selling expense per unit (202) (112) Contribution margin per unit $81 $96 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast Atlantic Wave 2,440 1,220 Pacific Pounder 0 1,220 Question Content Area a . Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory as a whole percent, rounded to two decimal places, if required.
Richardson Ski Racing (RSR) sells equipment needed for downhill ski racing. One of RSR's products is fencing used on downhill courses. The fence product comes in 150-foot rolls and sells for $210 per roll. However, RSR offers quantity discounts. The following table shows the price per roll depending on order size: Quantity Ordered From To Price per Roll 1 75 $210 76 125 $185 126 225 $170 226 and up $145 The file RSR contains 172 orders that have arrived for the coming six weeks. (e) Use the VLOOKUP function with the preceding pricing table to determine the total revenue (in dollars) from these orders. $ (b) Use the COUNTIF function to determine the number of orders in each price bin. Quantity Ordered From To Price per Roll Number of Orders 3 75 $210 76 125 $185 126 225 $170 226 and up $145
Har

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