Your Company manufactures and sells three products that all use a liquid compound as an ingredient. The high demand for all three of these products exceeds the supply of liquid compound that is available from suppliers and only 6,025 ounces are available. Information related to the three products is below: Products A B Demand in units 1,500 1,000 425 Selling price per unit Variable costs per unit $120 $100 $200 $84 $70 $130 Ounces per unit 5 3 2 What is the maximum annual net operating income that Your Company can make each year from these three products? Do not use $ in your answer.

Your Company manufactures and sells three products that all use a liquid compound as an ingredient. The high demand for all three of these products exceeds the supply of liquid compound that is available from suppliers and only 6,025 ounces are available. Information related to the three products is below: Products A B Demand in units 1,500 1,000 425 Selling price per unit Variable costs per unit $120 $100 $200 $84 $70 $130 Ounces per unit 5 3 2 What is the maximum annual net operating income that Your Company can make each year from these three products? Do not use $ in your answer.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

help me
FRANCORP sells two products. Products M N Selling price per unit $80 $60 Less variable expenses per unit $46 $40 Contribution margin per unit $34 $20 Current demand per week (units) 2,100 2,400 Processing time required on machine XYZ per unit 2 min. 1 min. Machine XYZ is a constrained resource and is being used at 100% capacity. Machine XYZ has a capacity of 3,000 minutes per week. Assuming FRANCORP wants to maximize its total contribution margin, how much of each product should it produce? a. 2400 units of N and 300 units of M b. 300 units of N and 2100 units of M c. 1200 units of N and 1050 units of M d. 2400 units of N and 0 units of M
Crane Industries sells two electrical components with the following characteristics. Fixed costs for the company are $700,000 per year. XL-709 CD-918 $31 23 Sales price $17 Variable cost 12 Sales volume86,800 units217,000 units How many units of EACH product must Crane Industries sell in order to break even?
i need the answer quickly
The management of Caribbean Juices has provided you with the following data on its Creamy Brand juice mix. Sales revenue $600,000 Unit selling price $10 Contribution margin ratio 40% Fixed cost $200,000What is the unit variable cost? a. $0.40 b. $4 c. $0.60 d. $6
i need the answer quickly
Krispies Ltd manufactures and sells three products which have the following revenue and costs per unit: Snap Crackle Pop R R Selling price per unit 15 20 12 Variable cost per unit 10 13 6 Fixed cost per unit Unit fixed costs are based on the following sales volumes: Snap -– 15 000 units Crackle – 12 000 units Pop – 30 000 units Required: Calculate the aggregate break-even units and sales for Krispies Ltd. Round to two decimals.
Sheridan's Fish House can produce and sell only one of the following two products: Fried catfish Fried grouper Fryer Hours Required O $12700 O $38100 O $50800 O $63500 3 4 Contribution Margin Per Unit $15 $16 The company has fryer capacity of 12700 hours. How much will the contribution margin be if it produces only the most profitable product?
Fleming's Gourmet Popcorn produces and sells assorted boxed popcorn. The unit selling price is $45, unit variable costs are $35, and total fixed costs are $800. How many boxes of chocolates must Palmer's Gourmet Chocolates sell to breakeven? 3,600 20.50 80 10
Pau, Inc., which has fixed costs of $51401, sells two products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Sales Price Variable Cost Sales Mix Product A Product B $ $ $23 $8 40 % 16 7 60% How many units of Product B must Pau sell to break even Do not round intermediate calculations. Round your final answer to the nearest whole number. 0 out of 1 points
Oriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below: A1 A2 A3 Total Selling price per unit $200 $500 $1 000 Variable cost per unit $60 $250 $600 Expected unit sales (annual) 15,000 7,000 2,000 24,000 Sales mix 60 percent 30 percent 10 percent 100 percent Total annual fixed costs are $4,000,000. Assume the sales mix remains the same at all levels of sales. Required: SHOW YOUR WORKINGS FOR ALL SECTIONS Calculate the weighted average unit contribution margin, assuming a constant sales mix.
Pau, Inc., which has fixed costs of $88,333, sells two products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Product A Product B $ 22 $ 9 40 % Sales Price $ $ 17 Variable Cost Sales Mix 60% How many units of Product B must Pau sell to break even Do not round intermediate calculations. Round your final answer to the nearest whole number.