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Viktor [21]
3 years ago
7

A company has three products possible products that it can produce in a machine intensive production process. Capacity is constr

ained by the number of hours the machines can run during a period and the products are so popular that all units produced will be sold. Here is additional information:
​ Product A Product B Product C
Contribution per unit $20 $30 $40
Machine hours per unit 2.5 3.25 4.5
Which of the following would be an accurate conclusion based on these facts?

A. Since Product C has the greatest contribution margin per unit and therefore emphasizing its production and sales will lead to the highest operating income in the short-run

B. Since A takes less time to produce, maximization of operating income will occur by emphasizing production and sales of A.

C. A balanced mix of 1/3 A, 1/3 B, and 1/3 C should be the goal when maximizing operating income in the short-run.

D. Product B should be emphasized if the goal is to maximize contribution margin.
Business
1 answer:
disa [49]3 years ago
3 0

Answer:

D

Explanation:

                                          A             B             C

Contribution per unit      20          30           40

Machine hours per unit  2.5          3.25       4.5

Contribution per hour     8             9.23       8.89

Product B has the highest contribution per hour .

It is stated that the capacity is constrained by the number of hours the machine can run during a period . and all products produce will be sold. This has made the machine hour the determinant factor in the situation.

Therefore product B should be emphasized if the goal is to maximize contribution margin.

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Hillside issues $2,600,000 of 5%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31
Amanda [17]

Answer:

1.- thwe cash payment are the same for each period as the coupon bond rate is fixed:

2,600,000 face value x 5% coupon rate / 2 payment per year = <em>65,000</em>

<em>On the last payment, we are going to calculate 65,000 + face value</em>

<em>2,600,000 + 65,000 = 2,665,000</em>

<em>2.- amortization per period 19,513</em>

<em>3.- interest expense per period 45,487</em>

<em>4.- 45,487 interest expense per period x 30 payment dates =  1,364,610</em>

cash    3,182,390  debit

   bonds payable   2,600,000 credit

   premium on BP     585,390 credit

-- to record issuance --

interest expense 45,487 debit

premium on BP    19,513 debit

    cash                                  65,000 credit

-- entry for each payment date--

Explanation:

proceeds: 3,182,390

face value: 2,600,000

premium:       585,390

amortization per period:

585,390 / 30 payment = 19,513

This will be the amortization on the premium on bonds payable for each payment

3.- as the amortization is fixed under straight-line method the interest expense is also fixed:

65,000 cash proceeds - 19,513 amortization = 45,487 interest expense

6 0
3 years ago
A higher price point should create value for the customer. The buyers need to know that they are paying for __________, or an un
nlexa [21]

Answer:

Differentiation.

Explanation:

The concept of value for the customer corresponds to the expectation that the product will meet the needs, desires and features that he expects.

The customer's perception of the concept of value is affected in rational and irrational ways, such as brand image, product performance, high price, etc.

Therefore, when a company offers a product at a higher price, it is passing on to the consumer the higher production cost of an item, which has features that add greater value and functionality, such as differentiation, personalization or an unforgettable customer experience.

Differentiated products are those produced in a more heterogeneous way compared to standard products, therefore differentiated products have distinct characteristics that add greater value, such as new features, technology, design, durability, style, etc.

3 0
3 years ago
Wildhorse Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total
tangare [24]

Answer:

Variable cost per unit= $1.4 per unit

Explanation:

Giving the following information:

Miles Driven Total Cost Miles Driven Total Cost

January: 8,000 $14,120

March: 8,550 $14,979

February: 7,490 $13,495

April: 8,195 $14,490

To calculate the variable cost under the high-low method, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (14,979 - 13,495) / (8,550 - 7,490)

Variable cost per unit= $1.4 per unit

7 0
3 years ago
During global culture training for a group of employees who are being transferred to Egypt, Charmaine, the HR training manager,
joja [24]

Answer: Option E

Explanation: Cultural training refers to the training that is given to an individual for informing them about other cultures know-how.

In the Arab culture, the holding of hands is considered as an act of giving respect to others. It is considered as showing devotion and equality to the opposite party. Such acts comes from the well known hospitality culture of Arabic countries.

Thus, from the above we can conclude that the correct option is E.

7 0
3 years ago
Why is it that everyone cannot have everything they could possibly want?
Vaselesa [24]

because that would make you spoiled, and no one will like you. And some things aren't buyable

7 0
3 years ago
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