A private contractor becouse it is important
Total cost of 10000 snowboards
Per unit Total
Direct material 100 1000000
Direct Labor 30 300000
Variable overhead 45 450000
Fixed overhead 635000
Fixed selling and administrative costs 115000
Total cost of 10000 snowboards 2500000
Cost of one snowboard = Total cost of 10000 snowboards / Total number of snowboards
Cost of 1 snowboard $ 250
Thus, the cost of 1 snowboard = $ 250
Now, the selling price is set as = Total costs + 15 % on total costs
Selling price = $ 250 + (15 % × $ 250)
Selling price = $ 250 + $ 37.50
Selling price = $ 287.50 per snowboard
Answer:
Product LN JQ RQ
Ranking 1st 2nd 3rd
Explanation:
<em>Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product with he highest contribution per unit of the scare resource
.</em>
<em>Jordision should rank rank its products using contribution per minute of constraint</em>
<em>Ths is done as follows:</em>
\Product LN JQ RQ
Selling price 161.72 50.32 468.25
Variable cost <u>(118.94) (241.42) (342.92)</u>
Contribution (a) 42.78 108.9 125.33
Minute (b) <u> 2.30 6.60 8.30</u>
Contribution/minute($)a/b 18.6 16.5 15.1
Ranking 1st 2nd 3rd