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Sedaia [141]
3 years ago
8

A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution

margin of $8 and takes two machine hours to make and Product B has a unit contribution margin of $18.0 and takes three machine hours to make. If there are 5000 machine hours available to manufacture a product, income will be:
Business
1 answer:
Mashutka [201]3 years ago
6 0

Answer:

Income = $30,000

Explanation

<em>Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product </em><u><em>with he highest contribution per unit of the scare resource</em></u>

Product       Cont/unit          machine hr /unit    cont/hr    Ranking

A                    $8                    2 hrs                      $4/hr             2nd  

B                    $18                  3 hrs                       $6/hr            1st

<em>Hence the company should allocate the resource to the product B</em>

<em>Hence the total contribution</em>

= 5000 hrs × $6 per hr.

= $30,000

Income = $30,000

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A work breakdown structure must be decomposed at least four levels in order to be effective. true false
Eddi Din [679]

A work breakdown structure must be decomposed at least four levels in order to be effective- FALSE

   By adopting task breaking, a popular productivity technique, workload can be made more reasonable and approachable. The instrument used to apply this method to projects is the Work Breakdown Structure (WBS), one of the important project management papers. To ensure that project plans are in sync, it does it on its own by combining size, cost, and schedule baselines.

A  Work Breakdown structure is used to graphically, hierarchically, and deliverable-focused decompose a project (WBS). Project managers can use it to break down the focus of their operations and view all the tasks required to complete them, making it a helpful diagram.

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4 0
2 years ago
Sheffield Company had sales in 2019 of $1,842,400 on 65,800 units. Variable costs totaled $1,184,400, and fixed costs totaled $4
vlada-n [284]

Answer:

Assuming that no changes happened, 2020 sales and expenses should be similar to 2019's:

                                       Total                        Per unit

Total sales                   $1,842,400                   $28

Variables costs           <u>($1,184,400)</u>                  <u>($18)</u>

Contribution margin    $658,000                    $10

Fixed costs                 <u>($498,000)</u>                  <u>($7.57)</u>

Operating income       $160,000                    $2.43

5 0
3 years ago
He idea underlying maslow's hierarchy of needs is that the needs at the top of the pyramid must be satisfied before one can conc
lana66690 [7]
True i hope this helps you 
7 0
3 years ago
Lucas Diving Supplies Company, in its first year of business, had labor costs of $66,000, overhead costs of $98,000, materials p
bazaltina [42]

Answer:

the cost of goods manufactured is $183,000

Explanation:

The computation of the cost of goods manufactured is shown below:

Cost of goods manufactured = Labor cost + direct material purchased + overhead cost - ending balance of material - ending balance of work in process

= $66,000 + $22,000 + $98,000 - $1,000 - $2,000

= $183,000

Hence, the cost of goods manufactured is $183,000

6 0
3 years ago
On December 31, the Accounts Receivable ending balance is $80,000. Assume that the unadjusted balance of Allowance for Uncollect
kkurt [141]

Answer:

$6,100

Explanation:

Calculation to determine what The amount of bad debt expense recorded on December 31 will be:

Using this formula

Bad debt expense=(Estimated % of accounts receivable*Accounts Receivable ending +balance)+Unadjusted balance of Allowance for Uncollectible Accounts

Let plug in the formula

Bad debt expense=(7%*$80,000)+$500

Bad debt expense=$5,600+$500

Bad debt expense=$6,100

Therefore The amount of bad debt expense recorded on December 31 will be:$6,100

7 0
3 years ago
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