Chapter 11, Problem 41P

1.

To determine

State the fundament different about the fixed versus variable overhead assigned to products.

2.

To determine

Calculate both the gross profit per unit and the contribution margin per unitfor each product. Describe and explain whether either of these profitability measures usefulfor planning the optimum short-term product mix.

3.

To determine

Indicate the way in which the optimumshort-term product mix should be ascertained and state the product that is most desirable. Indicate the product that is least desirable among the three.

4.

To determine

Describe whether the limiting resource would affect the product-mix decision and identify the product thatis most desirable and least desirable.

5.

To determine

Describe the way in which the optimum product mix be calculated when there are only two products and one or moreconstraints.

6.

To determine

Describe the way in which the optimum product mix be ascertained when there are more than two products and one ormore constraints.

7.

To determine

State the primary character of the management accountant in terms of planning the optimum short-termproduct mix.