1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bazaltina [42]
3 years ago
5

The Wester Corporation produces three products with the following costs and selling prices:

Business
2 answers:
vitfil [10]3 years ago
8 0

Answer:

Product A, then Product C and finally Product B

Explanation:

The unit profit  = Selling price per unit - Variable cost per unit - Fixed cost per unit

Unit Profit of product A = $21 - $11 - $5 = $5

Unit Profit of product B = $12 - $7 - $3 = $2

Unit Profit of product C = $32 - $18 - $9 = $5

The profit of each product in 1 machine hour = 1 hour/ Machine hours per unit * Unit Profit

Profit of Product A in 1 hour using machine = 1/0.2 * $5 = $25

Profit of Product B in 1 hour using machine = 1/0.5*$2 = $4

Profit of Product C in 1 hour using machine = 1/0.2* $5 = $25

Product A & Product C have same profit in 1 hour machine, then we have to consider Direct labor hours per unit which product A is 0.4 while product C is 0.7. It means Product C is more costly in direct labour than Product A.

In short, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is Product A, then Product C and finally Product B

viva [34]3 years ago
3 0

Answer: The ranking of the product in terms the most profit to the least profit is A C B

Explanation:

A. B. C

$ $ $

Selling price per unit. 21 12 32

Less: Variable cost. 11 7 18

---------- ----------- ----------

Contribution margin. 10 5 14

Less: Fixed cost per unit. 5 3 9

-------- ---------- -----------

Profit. 5 2 5

--------- ------- --------

Since the machine hour is the constraint, we divide the profit by the machine hour per unit

Product A = 5÷0.2 = 25

Product B= 3 ÷ 0.5 = 4

Product C = 5 ÷ 0.2 = 25

Therefore the ranking in terms of most profitable to the least profitable is ACB

You might be interested in
Which of the following is not a benefit of using advertising to promote a product or service?
nevsk [136]
Is personal and persuasive
8 0
3 years ago
What are the benifits of electric kitchens
Ksju [112]
<span>Induction offers the following benefits and performance advantages: Faster. Because energy is directly transferred within the pan metal, cooking on an electric induction range is extremely fast - even faster than gas.</span>
3 0
3 years ago
A new technology is announced which allows manufacturers to produce widgets for less. Widgets are a key input in the production
Tanzania [10]

Answer:

The supply curve will shift to the right.

Explanation:

Whenever there is increase in supply of goods, due to any reasons the supply curve moves to right.

Here, as with the introduction of new technology, the cost of widgets one of the key inputs to the production of whatchamacallits, is reduced,

Accordingly, with the reduction in price of inputs the cost for manufacturers will decrease and they will produce more.

As a result the supply for the product whatchamacallits will increase, and with that the supply curve will move right.

6 0
3 years ago
Leasing allows business owners to forecast cash flows more ________ because lease payments are ________ amounts paid over a part
Pie
Leasing allows business owners to forecast cash flows more ACCURATELY, because lease payment are FIXED amount paid over a particular time period.
Leasing involves paying a specified amount of money monthly or yearly for use of a particular landed property. Leasing fees are usually fixed in amount and this allows one to accurately calculate how much money one can expect from this source of revenue.
3 0
3 years ago
What leadership approach is considered the most dominant among the styles and why?
Lana71 [14]

Answer:                        

Democratic leadership approach

Explanation:

Democratic leadership, often recognized as participatory leadership, is a form of management style wherein team members play a much more participatory position in the procedure of  making business decisions.

        The option to engage is provided to all in such a framework, ideas are openly shared and conversation is promoted. Because the democratic process focuses solely on the equal rights of groups as well as the unlimited flow of information, the team leader is only there to provide advice and influence.

Such style of leadership will extend from private companies to schooling to the government to any entity. That's why it is considered to be most dominating.

4 0
3 years ago
Other questions:
  • Economists argue that:_______.
    13·1 answer
  • You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The
    12·1 answer
  • Carolina mills purchased $270,000 in supplies this year. the supplies account increased by $10,000 during the year to an ending
    10·1 answer
  • A firm wants to create a WACC of 11.2 percent. The firm's cost of equity is 16.8 percent and its pretax cost of debt is 8.7 perc
    14·1 answer
  • Cindy operates Birds-R-Us, a small store manufacturing and selling 200 bird feeders per month. Cindy's monthly total fixed costs
    6·1 answer
  • Private ownership differs from state ownership in that in private ownership _____.
    13·1 answer
  • Coronado Company's records indicate the following information for the year:
    12·1 answer
  • Green Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased b
    11·1 answer
  • Rita Company buys merchandise on account from Linus Company for $590. Rita sells the goods to Ellis for $900 cash. Use a tabular
    6·1 answer
  • Sandy borrows Mike’s car for weekend. The car gets a flat tire, so Sandy purchases a new one. Mike now owns the new tire. This m
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!