Z Company produces three (3) products, X, Y, and Z. One machine is used to produce the three products. Additional information is available as follows: Prod CM per unit Time on machine Demand X P 50.00 60 units Y 40 units Z 50 units 90.00 112.50 25 minutes 50 minutes OX= 60; Y = 40;Z = 9 OX=60; Y = 40; Z = 50 OX=56; Y = 28; Z = 18 OX=168; Y=0;Z=0 75 minutes The machine can be operated 7 days a week, for 10 hours per day. Question: How many units should be produced and sold to maximize the weekly contribution margin?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Suppose in the preceding problem
above, Z Company decided to eliminate
Product C, what will be the effect on the
company's total income?
O Increase in profit by P1.00 per unit
O Decrease in profit by P2.00 per unit
O
Increase in profit by P3.00 per unit
Decrease in profit by P3.00 per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F300f1334-f5c3-4193-8d3f-d660839e1129%2F0e01fa1c-49cd-424d-b532-29895f652f97%2Fw9ilaf_processed.jpeg&w=3840&q=75)
![Z Company produces three (3) products,
X, Y, and Z. One machine is used to
produce the three products.
Additional information is available as
follows:
Prod CM per unit Time on machine
Demand
X P 50.00
60 units
Y
40 units
Z
50 units
90.00
112.50
25 minutes
50 minutes
OX= 60; Y = 40; Z-9
OX=60; Y = 40; Z = 50
OX=56; Y = 28; Z=18
OX=168; Y=0;Z=0
75 minutes
The machine can be operated 7 days a
week, for 10 hours per day.
Question: How many units should be
produced and sold to maximize the
weekly contribution margin?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F300f1334-f5c3-4193-8d3f-d660839e1129%2F0e01fa1c-49cd-424d-b532-29895f652f97%2Frut7bom_processed.jpeg&w=3840&q=75)
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