The following is yearly information on two main sources for the company profit:Row materialLabor costUnit madeDemandpricecostPRODUCT A$30$10030001850250PRODUCT B$45$7825002100170The fixed cost is estimated to be $1000 annually.Based on the above information find the following:1- The company yearly profit2- Use goal seek to find the followinga. At what PRODUCT B demand both products will generate the same revenuc?b. How much they should produce from each Product A and B, to reach a profit of $500,00,if the demand of them is equal to .75 of the production and Product A should be 50% ofProduct B.3- If the company will sell the same amount from Product A and Product B which represents 65%for Product A and 76% for Production B, how much they should produce from both the get profitof $750,000

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The following is yearly information on two main sources for the company profit: Row material Labor cost Unit made Demand cost PRODUCT A PRODUCT B $30 $45 $100 $78 The fixed cost is estimated to be $1000 annually. Based on the above information find the following: 1- The company yearly profit 3000 2500 1850 2100 250 170 price

The following is yearly information on two main sources for the company profit: Row material Labor cost Unit made Demand cost PRODUCT A PRODUCT B $30 $45 $100 $78 The fixed cost is estimated to be $1000 annually. Based on the above information find the following: 1- The company yearly profit 3000 2500 1850 2100 250 170 price

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.16E

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Question

The following is yearly information on two main sources for the company profit:
Row material
Labor cost
Unit made
Demand
price
cost
PRODUCT A
$30
$100
3000
1850
250
PRODUCT B
$45
$78
2500
2100
170
The fixed cost is estimated to be $1000 annually.
Based on the above information find the following:
1- The company yearly profit
2- Use goal seek to find the following
a. At what PRODUCT B demand both products will generate the same revenuc?
b. How much they should produce from each Product A and B, to reach a profit of $500,00,
if the demand of them is equal to .75 of the production and Product A should be 50% of
Product B.
3- If the company will sell the same amount from Product A and Product B which represents 65%
for Product A and 76% for Production B, how much they should produce from both the get profit
of $750,000

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