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3 years ago

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

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Target return Objective-

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1 year ago

Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and fish. Ginger can gather mangoes faster t

Lyrx [107]

Answer:

C. Maryann should specialize in the activity for which she has a comparative advantage.

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3 years ago

Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts

sineoko [7]

The amount of the bad debts expense adjusting entry is:$7665.

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2 years ago

Malko Enterprises’ bonds currently sell for $1,020. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,

mel-nik [20]

Answer:

Current yield = <u>Annual coupon</u>

Current market price

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$1,020

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3 0

3 years ago

An investor who was not as astute as he believed invested $276,500 into an account 9 years ago. Today, that account is worth $21

Dimas [21]

Answer:

The annual rate of return is -2.83%

Explanation:

The annual rate can be calculated from the formula FV=PV*(1+r)^N

Where FV is the future value of the investment

PV is the amount invested which is $276,500

N is 9 years

213600=276,500*(1+r)^9

213600/276500=(1+r)^9

divide index on both sides by 9

(213600/276500)^1/9=1+r

(213600/276500)^1/9-1=r

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Hence the annual rate of return on the investment is -2.83%, which means the investment depleted by 2.83% from initial invested amount of $276,5000 to $213,600 after nine years

6 0

3 years ago

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