Selling price Variable expenses: Direct materials other variable expenses Total variable expenses Contribution margin. Contribution margin ratio X5 $90.00 O$ 33,000 O$ 35,500 O$ 12,600 O$ 20,400 27,00 27.00 54.00 $.36.00 40% Product YB $ 60.00 15.00 30.00 45.00 $ 15.00 25% 29 $ 80.00 9.00 47.00 56.00 $ 24.00 30% JSON-2819 has enough demand to sell 850 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-2819 can earn per month using its 5,700 pounds of direct materials optimally?
Selling price Variable expenses: Direct materials other variable expenses Total variable expenses Contribution margin. Contribution margin ratio X5 $90.00 O$ 33,000 O$ 35,500 O$ 12,600 O$ 20,400 27,00 27.00 54.00 $.36.00 40% Product YB $ 60.00 15.00 30.00 45.00 $ 15.00 25% 29 $ 80.00 9.00 47.00 56.00 $ 24.00 30% JSON-2819 has enough demand to sell 850 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-2819 can earn per month using its 5,700 pounds of direct materials optimally?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject-Acounting
![Assets
Cash
Accounts receivable
Inventory.
Plant and equipment, net
Investment in Tesla Inc.
Land (undeveloped)
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Long-term debt
Stockholders' equity
Total liabilities and stockholders' equity
JEY-1737 Inc.
Income Statement
Sales
Operating expenses
Net operating incone
Interest and taxes:
Interest expense
Tax expense
Net income
O$ 314,280
O$ 307,530
O$ 327,030
O $ 304,780
JEY-1737 Inc.
Balance Sheet
$ 130,000
195,000
$4,656,000
4,050,720
605,280
325,000
$ 280,280
Beginning
Balance
$ 136,000
343,000
580,000
861,000
391,000
250,000
$ 2,561,000
$ 377,000
1,038,000
1,146,000
$ 2,561,000
Ending Balance
$ 139,000
474,000
477,000
870,000
426,000
250,000
$ 2,636,000
$ 334,000
1,038,000
1,264,000
$ 2,636,000
JEY-1737 Inc. paid dividends of $162,280 last year. The "Investment in Tesla Inc." item on the balance sheet represents an investment
in the stock of another company. The company's minimum required rate of return is 15%
What was the company's residual income last year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2Fe196b874-7e44-429d-86f4-c58838b2f6f8%2Femzp0t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assets
Cash
Accounts receivable
Inventory.
Plant and equipment, net
Investment in Tesla Inc.
Land (undeveloped)
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Long-term debt
Stockholders' equity
Total liabilities and stockholders' equity
JEY-1737 Inc.
Income Statement
Sales
Operating expenses
Net operating incone
Interest and taxes:
Interest expense
Tax expense
Net income
O$ 314,280
O$ 307,530
O$ 327,030
O $ 304,780
JEY-1737 Inc.
Balance Sheet
$ 130,000
195,000
$4,656,000
4,050,720
605,280
325,000
$ 280,280
Beginning
Balance
$ 136,000
343,000
580,000
861,000
391,000
250,000
$ 2,561,000
$ 377,000
1,038,000
1,146,000
$ 2,561,000
Ending Balance
$ 139,000
474,000
477,000
870,000
426,000
250,000
$ 2,636,000
$ 334,000
1,038,000
1,264,000
$ 2,636,000
JEY-1737 Inc. paid dividends of $162,280 last year. The "Investment in Tesla Inc." item on the balance sheet represents an investment
in the stock of another company. The company's minimum required rate of return is 15%
What was the company's residual income last year?
![JSON-2819 Inc. produces Products X5, Y8, and 29. The following table provides per unit information relating to the three products:
Product
YS
$ 60.00
Selling price
Variable expenses:
Direct materials
other variable expenses
Total variable expenses
Contribution margin
Contribution margin ratio.
X5
$90.00
O$ 33,000
O$ 35,500
O $12,600
O $ 20,400
27.00
27.00
54.00
$36.00
40%
15.00
30.00
45.00
$15.00
25%
29
$ 80.00
9.00
47.00
56.00
$24.00
30%
JSON-2819 has enough demand to sell 850 units of each product per month. Each product requires the same direct materials in its
production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available
every month.
What is the maximum contribution margin that JSON-2819 can earn per month using its 5,700 pounds of direct materials optimally?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2Fe196b874-7e44-429d-86f4-c58838b2f6f8%2Fpkk940u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:JSON-2819 Inc. produces Products X5, Y8, and 29. The following table provides per unit information relating to the three products:
Product
YS
$ 60.00
Selling price
Variable expenses:
Direct materials
other variable expenses
Total variable expenses
Contribution margin
Contribution margin ratio.
X5
$90.00
O$ 33,000
O$ 35,500
O $12,600
O $ 20,400
27.00
27.00
54.00
$36.00
40%
15.00
30.00
45.00
$15.00
25%
29
$ 80.00
9.00
47.00
56.00
$24.00
30%
JSON-2819 has enough demand to sell 850 units of each product per month. Each product requires the same direct materials in its
production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available
every month.
What is the maximum contribution margin that JSON-2819 can earn per month using its 5,700 pounds of direct materials optimally?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education