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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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Answer:

$226,900

Explanation:

Calculation to determine How much cash was provided by operating activities

Using this formula

Operating activities=Net income+Depreciation-Accounts receivable + inventories increased-Prepaid expenses - accounts payable decreased

Let plug in the formula

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Operating activities =$226,900

Therefore The Amount of cash that was provided by operating activities is $226,900

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<u>Answer:</u>

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3 0
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Some of the essential preparations when communicating to inform, persuade, and argue includes;

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3 0
3 years ago
Division A manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A
olya-2409 [2.1K]

Answer:

The maximum transfer price would be $50.

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