Managerial Accounting + Connect Access Card
7th Edition
ISBN: 9781260581263
Author: John Wild
Publisher: McGraw-Hill College
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Textbook Question
Chapter 10, Problem 7E
Exercise 23-11 Sales mix A1
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4 pounds of the material, $5 uses 3 pounds of the material, and G9 uses 6 pounds of the material. Demand for all products is strong, but only 50,000 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. Orders for which product should be produced and filled first, then second, then third? Support your answer.
| K1 | $5 | G9 | |
| Selling price………………………… | $160 | $112 | $210 |
| Variable costs………………………. | 96 | 85 | 144 |
Check K1 contribution margin per pound, $16
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Students have asked these similar questions
Answer Problem #3 : items 9 & 10
12 Our company currenty makes and sells two products: A and B. The relative number of production and sales between A
and B is 2:3. In other words, each time the company produces and sells two units of product A, it produces and sells three
units of product B. The following cost information is available:
Company
A
В
Unit Selling Price
$11
$15
Unit Varible Cost
$5
$7
Total fixed expenses
$15,000
How much sales volume does the company need to make from Product B if it wants to achieve $3,000 profits?
(Do not round intermediate calculations. Round the final answer to the nearest units.)
А.
1,500 units
В.
1,340 units
C.
893 units
D.
1,000 units
Е.
None of the above
Problem 23-3B Sales mix strategies P3
Sung Company produces two models of its product with the same machine. The machine has a capacity of 200 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
Standard
$60
20
$40
1 hour
550 units
Pro
$80
30
$50
2 hours
175 units
Required
1. Determine the contribution margin per machine hour for each model.
2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month?
3. Assume the maximum demand for the Standard model is 180 units (not 550 units). How many units of each model should the
company produce? How much total contribution margin does this mix produce per month?
Chapter 10 Solutions
Managerial Accounting + Connect Access Card
Ch. 10 - Prob. 1MCQCh. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 1DQCh. 10 - Is nonfinancial information ever useful in...Ch. 10 - What is a relevant cost? Identify the two types of...Ch. 10 - Prob. 4DQCh. 10 - Prob. 5DQ
Ch. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQCh. 10 - Explain how a price-setter differs from a...Ch. 10 - Prob. 12DQCh. 10 - Prob. 1QSCh. 10 - Prob. 2QSCh. 10 - Prob. 3QSCh. 10 - Prob. 4QSCh. 10 - Prob. 5QSCh. 10 - Prob. 15QSCh. 10 - Prob. 6QSCh. 10 - Prob. 7QSCh. 10 - Prob. 10QSCh. 10 - Prob. 8QSCh. 10 - Prob. 9QSCh. 10 - Prob. 11QSCh. 10 - Prob. 12QSCh. 10 - Prob. 13QSCh. 10 - Prob. 14QSCh. 10 - Prob. 16QSCh. 10 - Prob. 17QSCh. 10 - Prob. 18QSCh. 10 - Raju is & price-taker in a competitive product...Ch. 10 - Prob. 20QSCh. 10 - Prob. 21QSCh. 10 - Prob. 1ECh. 10 - Exercise 23-5 Make or buy A1 Gelb Company...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - Exercise 23-11 Sales mix A1 Childress Company...Ch. 10 - Prob. 8ECh. 10 - Prob. 9ECh. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Exercise 23-3 Accept new business or nor...Ch. 10 - Prob. 15ECh. 10 - Prob. 1PSACh. 10 - Prob. 2PSACh. 10 - Prob. 3PSACh. 10 - Prob. 4PSACh. 10 - Prob. 5PSACh. 10 - Prob. 6PSACh. 10 - Prob. 1PSBCh. 10 - Prob. 2PSBCh. 10 - Prob. 3PSBCh. 10 - Prob. 4PSBCh. 10 - Prob. 5PSBCh. 10 - Prob. 6PSBCh. 10 - Prob. 10SPCh. 10 - Assume Apple is designing a new smartphone. Each...Ch. 10 - Prob. 2AACh. 10 - Assume Samsung is designing a new smartphone. Each...Ch. 10 - Prob. 1BTNCh. 10 - Prob. 2BTNCh. 10 - Prob. 3BTNCh. 10 - Prob. 4BTNCh. 10 - Prob. 5BTNCh. 10 - Prob. 6BTN
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