**Surf Company Production Analysis**Surf Company manufactures two models of surfboards — the Glide and the Ultra. Despite having the capacity to sell all units produced, only 400 direct labor hours are available. To efficiently allocate resources, it is essential to analyze the labor hours and contribution margins for each model.### Key Information:- **Direct Labor Hours Available:** 400 hours- **Glide Model:** - Direct Labor Hours per Unit: 2 hours - Contribution Margin per Unit: $200- **Ultra Model:** - Direct Labor Hours per Unit: 4 hours - Contribution Margin per Unit: $300### Requirements:**(a) Compute the Contribution Margin per Direct Labor Hour:**To calculate this, divide the contribution margin per unit by the direct labor hours per unit for each product.**(b) Determine the Best Sales Mix:**Using the computed data, establish the optimal sales mix to maximize the contribution margin given the labor hour constraints.### Instructions:Utilize cells A2 to E10 in a spreadsheet to compute the necessary values and derive the best sales mix strategy. Highlight results under the categories for both the Glide and Ultra models.This analysis ensures that Surf Company optimizes its production capacity, maximizing profitability while efficiently utilizing available labor hours. **Contribution Margin Analysis for Glide and Ultra Models****Contribution Margin per Unit:**- Glide model: $200- Ultra model: $300**Required Tasks:**(a) **Compute the Contribution Margin per Direct Labor Hour for Each Product.**- Instructions: Use cells A2 to E10 from the given information to complete this question.| | Glide | Ultra ||-----------|-------|-------|| Contribution margin per direct labor hour | | |(b) **Determine the Best Sales Mix and the Resulting Contribution Margin.**- Instructions: Use cells A2 to E10 from the given information to complete this question.| | Glide | Ultra ||---------------------------|-------|-------|| Number of units at best sales mix | | || Contribution margin | | |**Explanation:**- The task includes computing the contribution margin per direct labor hour for the Glide and Ultra models.- Additionally, determine the optimal sales mix and evaluate the resulting contribution margin, utilizing provided information from specified spreadsheet cells.

Best sales mix is the combination of units which will provide the maximum contribution margin in…

Surf Company can sell all of the two surfboard models it produces, but it has only 400 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $200 for Glide and $300 for Ultra. Direct labor hours available Glide model - Direct labor hours per unit Ultra model - Direct labor hours per unit Glide model - Contribution margin per unit Ultra model - Contribution margin per unit Contribution margin per direct labor hour $200 Required: (a) Compute the contribution margin per direct labor hour for each product. (Use cells A2 to E10 from the given information to complete this question.) Number of units at hest sales mix 400 2 4 $300 Glide (b) Determine the best sales mix and the resulting contribution margin. (Use cells A2 to E10 from the given information to complete this question.) Glide Ultra Ultra

Surf Company can sell all of the two surfboard models it produces, but it has only 400 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $200 for Glide and $300 for Ultra. Direct labor hours available Glide model - Direct labor hours per unit Ultra model - Direct labor hours per unit Glide model - Contribution margin per unit Ultra model - Contribution margin per unit Contribution margin per direct labor hour $200 Required: (a) Compute the contribution margin per direct labor hour for each product. (Use cells A2 to E10 from the given information to complete this question.) Number of units at hest sales mix 400 2 4 $300 Glide (b) Determine the best sales mix and the resulting contribution margin. (Use cells A2 to E10 from the given information to complete this question.) Glide Ultra Ultra

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Dinesh Bhai
Great shore manufactures 2 products namely soft clean and hard clean. The costs and revenues are as follows: soft clean Hard clean Sales Price 75 44 Variable cost per unit 40 21 Total demand for soft is 10,000 units and for hard is 6,000 units. Machine hours is a scarce resource. During the year, 50,000 machine hours are available. soft requires 4 machine hours per unit, while hard requires 2.5 machine hours per unit. How many units of soft and hard should be produce.
mework int Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat-Sport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are erences Mc Graw Hill Price per unit Variable cost per unit Machine minutes per unit °F artly cloudy The one machine that is used to produce both models has a capacity of 29,700 machine-minutes per quarter. Fixed manufacturing costs per quarter are $355,000. Required A Required B Required: a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each model should WSG produce in a quarter? b. Suppose that the maximum unit sales in a quarter that WSG can achieve is 4,200 units of each product. How many units of each model should WSG produce in a quarter? Complete this question by entering your answers in the tabs below. Sport $195 $ 72 6 Sport Model Collegiate Model W Suppose that the maximum unit sales in a quarter…
Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 2,460 hours per year. Product Reno has a unit contribution margin of $120 and requires 5 hours of painting department time. Product Tahoe has a unit contribution margin of $75 and requires 3 hours of painting department time. There are no other constraints. Refer to the information for Billings Company above. Required: What is the contribution margin per hour of painting department time for each product? What is the optimal mix of products? What is the total contribution margin earned for the optimal mix?
Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 33,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Materials $0.23 per roll Labor 0.40 per roll Variable overhead 0.15 per roll Fixed overhead 0.20 per roll A potential supplier has offered to sell Reuben the rolls for $0.88 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? Reuben would see a $ in profit if he buys the rolls.
Rosie’s Company has three products, P1, P2, and P3. The maximum Rosie’s can sell is 72,000 units of P1, 45,000 units of P2, and 33,000 units of P3. Rosie’s has limited production capacity of 30,000 hours. It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie’s Company? Multiple Choice 138,000 P1, 45,000 P2, 33,000 P3. 29,700 P1, 45,000 P2, 138,000 P3. 138,000 P1, 41,000 P2, 138,000 P3. 31,500 P1, 41,000 P2, 33,000 P3. 29,700 P1, 46,000 P2, 29,700 P3.
Subject: acounting
Edge Company produces two models of its product with the same machine. The machine has a capacity of 172 hours per month. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Required: Contribution margin per unit 1. Determine the contribution margin per machine hour for each model Product Cootribution Margin Standard $ 230 100 $130 Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 hour 650 units Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin $ 260 156 $ 104 2 hours 250 units Standard Contribution margin per machine hour 2 How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Total…
Rosie's Company has three products, P1, P2, and P3. The maximum Rosie's can sell is 85,000 units of P1, 84,000 units of P2, and 72.000 units of P3. Rosie's has limited production capacity of 69,000 hours, It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie's Company? Multiple Choice 372.000 P1, 84,000 P2, 72,000 P3 64,800 P1, 84,000 P2, 372.000 P3. 372,000 P1, 80,000 P2, 372.0000 P3. 58,800 P1, B0,000 P2, 72.000 P3. 64,800 P1, 85,000 P2, 64,800 P3.
Subject: acounting
Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat—Sport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are Sport Collegiate Price per unit $ 285 $ 470 Variable cost per unit $ 108 $ 188 Machine minutes per unit 6 15 The one machine that is used to produce both models has a capacity of 35,100 machine-minutes per quarter. Fixed manufacturing costs per quarter are $445,000. Required: a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each model should WSG produce in a quarter? b. Suppose that the maximum unit sales in a quarter that WSG can achieve is 4,200 units of each product. How many units of each model should WSG produce in a quarter?
Beginning inventory, purchases, and sales for an inventory item are as follows: Sept. 1 Beginning Inventory 28 units $14 Sale 16 units 17 Purchase 30 units $16 30 Sale 29 units Assuming a perpetual inventory system and the first-in, first-out method, determine (a) the cost of the merchandise sold for the September 30 sale and (b) the inventory on September 30. a. Cost of merchandise sold $ b. Inventory, September 30 $