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vanhoe Productions Limited manufactures and sells three different products of different qualiti High, and Superior. The accounting department provides the following information on these proc Selling price per unit Variable costs per unit Contribution margin per unit Machine hours required Normal $35.00 $29.79 $5.21 0.02 High $43.00 $36.00 $7.00 0.04 Superior $56.00 $52.00 $4.00 0.08

vanhoe Productions Limited manufactures and sells three different products of different qualiti High, and Superior. The accounting department provides the following information on these proc Selling price per unit Variable costs per unit Contribution margin per unit Machine hours required Normal $35.00 $29.79 $5.21 0.02 High $43.00 $36.00 $7.00 0.04 Superior $56.00 $52.00 $4.00 0.08

FINANCIAL ACCOUNTING
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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Ivanhoe Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products: Selling price per unit Variable costs per unit Contribution margin per unit Machine hours required Normal High Superior $ $ $ Normal $35.00 $29.79 $5.21 0.02 Increase in contribution margin High $43.00 $36.00 Determine the contribution margin per machine hour. (Round answers to 2 decimal places, e.g. 15.25.) $7.00 0.04 Contribution Margin Superior $56.00 $52.00 $4.00 per machine hour per machine hour 0.08 per machine hour If the limited resource can be increased by 680 hours, calculate the maximum increase in contribution margin. Assume that Ivanhoe can sell all products manufactured.
Transcribed Image Text:Ivanhoe Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products: Selling price per unit Variable costs per unit Contribution margin per unit Machine hours required Normal High Superior $ $ $ Normal $35.00 $29.79 $5.21 0.02 Increase in contribution margin High $43.00 $36.00 Determine the contribution margin per machine hour. (Round answers to 2 decimal places, e.g. 15.25.) $7.00 0.04 Contribution Margin Superior $56.00 $52.00 $4.00 per machine hour per machine hour 0.08 per machine hour If the limited resource can be increased by 680 hours, calculate the maximum increase in contribution margin. Assume that Ivanhoe can sell all products manufactured.
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