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3 years ago

Holton Company makes three products in a single facility. Data concerning these products follow:

Business

1 answer:

evablogger [386]3 years ago

8 0

Answer:

86,700 minutes

Explanation:

a. Demand on the mixing machine:

Minutes required to produce 3000 units of A (3000 x 26.9) 80700

Minutes required to produce 1000 units of B (1000 x 2) 2000

Minutes required to produce 2000 units of C (2000 x 2) 4000

Total minutes = 86,700 minutes

Therefore, in order to satisfy the demand for all of the products they would need 86,700 minutes of mixing machine time,

but they only have 14,000 minutes available for each month.

This means that they cannot satisfy the demand with the number of minutes that they have available.

b.Optimal production plan:

Product A Product B Product C

Selling price per unit $ 137.10 $ 74.80 $ 167.60

Direct materials $ 59.70 $ 41.70 $ 100.70

Direct labor $ 43.00 $ 13.30 $ 29.50

Variable manufacturing overhead $ 8.20 $ 4.30 $ 13.80

Variable selling cost per unit $ 15.20 $ 3.10 $ 8.50

Total variable cost per unit $ 126.10 $ 62.40 $ 152.50

Contribution margin per unit $ 11.00 $ 12.40 $ 15.10

Mixing minutes per unit 26.90 2.00 2.00

Contribution margin per minute $0.41 $6.20 $7.55

Rank in terms of profitability 3 2 1

Optimal production 223 1,000 2,000

c. The company should be willing to pay $0.41 for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity for Product A.

For Product B the company should be willing to pay $6.20, and $7.55 for Product C.

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If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is receiving 100,000 in 90 days, it could:_____

ivolga24 [154]

A 90-day forward-sale purchase contract will help to reduce or eliminate the risk facing the U.S. Firm.

<h3>What is a Forward sale Contract?</h3>

This refers to a special contract between two parties to purchase or sell an asset at an agreed price on a future date.

The fact that the price has been set and agreed upon protects the parties from fluctuations, which in this case, is exchange rate risks.

The correct answer, thus, is A.

See the link below for more about Forward-sale contract:

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2 years ago

Use this end-of-period spreadsheet to answer the questions that follow. Finley Company End-of-Period Spreadsheet For the Year En

Alexeev081 [22]

Answer:

Explanation:

The retained earning are the earnings of the business organization which is earned until the date.

The net income or net loss would reflect in the statement of the retained earning account.

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

The journal entry is shown below:

Retained earnings A/c Dr $3,000

To Dividend A/c $3,000

(Being dividend account is closed)

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3 years ago

Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its rece

Shkiper50 [21]

Answer:

$106 million

Explanation:

allowance for doubtful accounts

debit credit

beg. balance 426

bad debt 85

ending balance <u>405 </u>

106

Since you need $106 million to balance the account, that should be the amount of bad debt written off during the current year. Allowance for doubtful accounts is a contra asset account, any debit balance increases accounts receivable while a credit balance decreases it.

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3 years ago

Cane company manufactures two products called alpha and beta that sell for $225 and $175, respectively. each product uses only o

tester [92]

Answer:

The special order should be rejected since it decreases net profit.

Explanation:

Alpha = $225

Beta = $175

total production capacity = 130,000 pounds

raw materials = $6 per pound

Production costs per unit Alpha Beta

direct materials $42 $24

direct labor $42 $32

variable manufacturing overhead $26 $24

fixed manufacturing overhead $34 $37

variable selling expenses $31 $27

<u>common fixed expenses $34 $29 </u>

total cost per unit $209 $173

Cane expects to sell 114,000 Alphas.

Net profit = (114,000 x $225) - (114,000 x $209) = $25,650,000 - $23,826,000 = $1,824,000

If the new sales order is accepted, Cane's revenue will increase to:

101,000 x $225 = $22,725,000
29,000 x $156 = $4,524,000
total = $27,249,000

Their total cost will by:

114,000* x $209 = $23,826,000
16,000 x ($209 - $34 avoidable fixed costs) = $2,800,000
total = $26,626,000

*This sale increases the output, but previous costs cannot be avoided.

Net profit with special order = $27,249,000 - $26,626,000 = $623,000

The special order should be rejected since it decreases net profit.

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3 years ago

Star workers and star athletes share a high need for ______________.

djverab [1.8K]

Star Workers and Star Athletes share a high need for achievement.

A need for achievement, also know as N-Ach, describes <u>how an individual has a desire to attain either one of these or a combination: skill mastery, great accomplishments, or high standards</u>.

Star workers and athletes are usually individuals who have a high need to become the best or reach great accomplishments in their field, thus it is accurate to say that both groups will have a high need for achievement.

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3 years ago