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
Katena32 [7]
3 years ago
13

Crane Company can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muff

ins 0.2 $4 Coffee Cakes 0.3 $5 The company has oven capacity of 3000 hours. How much will contribution margin be if it produces only the most profitable product?
Business
2 answers:
Makovka662 [10]3 years ago
8 0

The question is reproduced in the table below for clarity                        

                               Oven                                  Contribution

                         Hours Required                 Margin Per Unit

Muffins                        0.2                                           $4

Coffee Cakes        0.3                                        $5

Answer:

Total contribution margin = $ 60,000.00

Explanation:

<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in  such a way that it maximizes the contribution per unit of the scare resource.</em>

Therefore Crane Company should alocate the oven hours to maximise the contribution per unit of oven hour. This is done as follows:

Step 1

<em>Calculate he contribution per oven hour and rank the product</em>

                                                                      cont/hr                   ranking

Muffin                        $4/0.2 hour =              20                     <em> 1st</em>

Coffee cakes                 $5/0.3 hour=        16.67                      2nd

<em>Because Muffin generates the highest contribution per hour of Oven, Crane should allocate all the resource to it</em>

Step 2

<em>Calculate the Total contribution from the production of Muffin</em>

Total contribution margin = 20 per her × 3000

                                        = $ 60,000.00

Kay [80]3 years ago
5 0

Answer:

Explanation:

Given:

Muffins

Contribution hours = 0.2

Margin per unit = $4

Coffee Cakes

Contribution hours = 0.3

Margin per unit = $5

Required margin per unit contribution hours, muffins = 4/0.2

= $ 20

Required margin per unit contribution hours, coffee cakes = 5/0.3

= $ 16.67

For the most profitable product, muffins = $ 20 per unit contribution hours.

At 3000 hours of oven contribution hours,

Contribution margin = $ 20 × 3000

= $ 60,000 per unit.

You might be interested in
The discount rate assigned to an individual project should be based on: Group of answer choices the firm's weighted average cost
Inessa05 [86]

Answer:

none of the choices are correct

Explanation:

When the discount rate assigned for an individual project then it should be based on the risk i.e attached to the fund use needed by the project

There were various cases when a risky firm invested in a less risky project also if the same cost of capital is used so the firm could alter the decision of an investment in a negative manner

Therefore none of the choices are correct

3 0
3 years ago
Google is known for unusual interview questions. Explain what advantages might these have over more traditional questions about
Sonbull [250]

Answer:

1. those advantages could be very dangerous. someone could've hacked the system or anything & they're trying to get your information.

2. eliza should check in with her manager/boss and ask if it's ok for her to wear sandals.. just to be on the safe side.

3. jameela and jonas need to set some standards in their "relationship" because what they have going on can cause both of their jobs.

4. i would make sure that the promotions are fair, and not giving people promotions because i know them or anything, i'm gonna make sure that they've worked hard for it.

5. by telling these people my strengths & my weakness would cause less problems. there could be some things that i like and they don't like and we can make sure to never reach that point, because it's gonna cause a lot of trouble. explaining yourself or telling more about yourself could really help others get you.. that way you don't have to be rude to people when they say something you don't like or do something you don't like.

Explanation:

i hope this helped you!

8 0
3 years ago
The Wall Street Journal reports that the rate on four-year Treasury securities is 2.2 percent and the rate on five-year Treasury
Marina CMI [18]

Answer:

option:D

Explanation:

3 0
3 years ago
Which of the following is not a relatively recent change in policy concerning welfare
Airida [17]

This welfare-reform plan responded to criticisms that welfare encouraged poor people to remain unemployed in order to keep receiving aid. It replaced the traditional antipoverty program for poor families (Aid to Families with Dependent Children, or AFDC) with a new program called Temporary Assistance for Needy Families (TANF).

3 0
3 years ago
Read 2 more answers
Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 9 percent, while i
Alex787 [66]

Answer:

WACC = ke(E/V) + Kd(D/V)

WACC = 15(0.40) + 9(0.60)

WACC = 6 + 5.4

WACC = 11.4%

Explanation:

WACC is a function of cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure. The proportion of equity in the capital is expressed as E/V (0.40) while the proportion of debt in the capital structure is expressed as D/V (0.60).

3 0
3 years ago
Other questions:
  • Assets are equal to
    9·2 answers
  • Big Red Machines, a startup, has come up with a new product and has seen significant customer demand. Due to reinvestment in the
    10·1 answer
  • You find a fossil, and through careful study you find that only one-sixteenth of the carbon-14 that it once contained is still r
    7·1 answer
  • The listing type that assures a broker that he or she will receive compensation no matter who procures the buyer is what kind of
    15·1 answer
  • Macroeconomics is best defined as the study of
    5·1 answer
  • D Corporation applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under
    15·1 answer
  • gPlease record the following items in journal entry format. Clearly indicate the (a) account name (b) whether it is a (debit) or
    6·1 answer
  • An organization's mission differs from strategic planning in that strategic planning is the basic purpose of the organization
    11·1 answer
  • 32. What is a predatory financial service?
    10·1 answer
  • How is the noncontrolling interest in a subsidiary company calculated as of the end of a reporting period?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!