1.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed
The total amount of traceable fixed manufacturing
2.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The total amount of the company’s common fixed expenses.
3.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The financial advantage of the offer if company C expects to produce and sell 80,000 A during the current year and a new customer is willing to buy 10,000 additional A for a price of $80/unit.
4.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The financial disadvantage if company C accepts the offer to produce and sell 90,000 B during the current year and a new customer is willing to buy 5,000 additional B for a price of $39/ unit.
5.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The financial advantage or disadvantage if company C accepts the offer to produce and sell 95,000 A during the current year and a new customer is willing to buy 10,000 additional B for a price of $80/ unit and this offer will decrease A’s sales to regular customers by 5,000 units.
6.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The financial advantage (disadvantage) of discontinuing B product line if company C normally produces and sells 90,000 B per year.
7.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The financial advantage (disadvantage) of discontinuing B product line if company C produces and sells 40,000 B per year.
8.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The financial advantage (disadvantage) of discontinuing B product line if company C increases sales of A by 15,000 units and it normally sells and produces 60,000 B per year and 80,000 A per year.
9.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The financial advantage (disadvantage) of buying 80,000 units from the supplier instead of manufacturing those units if company C produces and sells 80,000 A during the current year and a supplier offered to manufacture and deliver 80,000 A to Company C for a price of $80/unit.
10.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The financial advantage (disadvantage) of buying 50,000 units from the supplier instead of manufacturing those units if company C produces and sells 50,000 A during the current year and a supplier offered to manufacture and deliver 80,000 A to Company C for a price of $80/unit.
11.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The pounds of material which are needed to manufacture one unit of each of the two products A and B.
12.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The contribution margin per pound of raw material is earned by each of the two products A and B.
13.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
Requirement 13
The units of each product that company C should produce to maximize its profits if the company's raw material available for production is limited to 160,000 pounds and customers would buy a maximum of 80,000 units of A and 60,000 units of B.
14.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The maximum contribution margin that Company C can earn in the limited quantity of raw materials units of each product if the company's raw material available for production is limited to 160,000 pounds and customers would buy a maximum of 80,000 units of A and 60,000 units of B.
15.
Case summary: Company C manufactures two products: A and B which require only one type of raw material that costs around $6 per pound and the company sells products A and B for $120 and $80 respectively. The company is capable to produce 100,000 units of each product and it considers that its traceable fixed manufacturing costs can be avoidable however, its common fixed expenses are unavoidable.
The amount which company C should be willing to pay per pound for additional raw materials if the company uses its 160,000 pounds of raw materials, the company's raw material available for production is limited to 160,000 pounds and customers would buy a maximum of 80,000 units of A and 60,000 units of B.
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Chapter 6 Solutions
Loose Leaf For Managerial Accounting for Managers
- Please see an attachment for details general Accounting questionarrow_forwardWhat is the firm's net profit margin?arrow_forwardTimberline worked on four jobs during its first year of operation: Nos. 501, 502, 503, and 504. Nos. 501 and 502 were completed by year-end, and No. 501 was sold at a profit of 35% of cost. A review of Job No. 503’s cost record revealed direct material charges of $18,000 and total manufacturing costs of $23,400. If Timberline allocated overhead at 140% of direct labor cost, the overhead allocated to Job No. 503 must have been __.arrow_forward
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