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
larisa86 [58]
3 years ago
7

Gunst Company produces three video games: Android, Bio-Mutant, and Cyclops. Cost and revenue data pertaining to each product are

as follows: Android Bio-Mutant Cyclops Selling price $ 100 $ 107 $ 125 Direct labor 48 24 60 Direct materials 9 8 16 Variable overhead 7 4 9 At the present time, demand for each of the company's products far exceeds its capacity to produce them. Thus, management is trying to determine which of its games to concentrate on next week in filling its backlog of orders. Gunst's direct labor rate is $12 per hour, and only 1,000 hours of direct labor are available each week. Determine the maximum total contribution margin the company can make by its best use of the 1,000 available hours. Total contribution margin?
Business
1 answer:
Dima020 [189]3 years ago
7 0

Answer:

Gunst should produce 500 Bio-mutant games:

  • total contribution margin = $71 x 500 = $35,500

Explanation:

                                   Android          Bio-mutant          Cyclops

selling price                  $100                 $107                   $125

labor                               $48                  $24                     $60

direct materials               $9                    $8                       $16

variable overhead          $7                     $4                        $9

contribution margin      $36                   $71                      $40

labor hours                        4                       2                          5

Bio-mutant generates by far the largest contribution margin and requires the least direct labor hours.

Gunst should produce 500 Bio-mutant games:

  • total revenue = $107 x 500 = $53,500
  • total contribution margin = $71 x 500 = $35,500

If it produces 250 Android games its total contribution margin will = $9,000

If it produces 200 Cyclops games its total contribution margin will = $8,000

You might be interested in
How long does it take to get a bio degree?
saw5 [17]
In Biology, once you graduate with your bachelor's, you may be tempted to immediately join the workforce. However, if you successfully graduate in four years<span> or less, you likely have what it takes to achieve a master's degree within one or </span>two years.

Hope this helps!
3 0
3 years ago
Before year-end adjusting entries, Dunn Company's account balances atDecember 31, 2017, for accounts receivable and the related
mixas84 [53]

Answer:

b.$1,375,000

Explanation:

Dunn Company's

Allowance for uncollectible accounts $1,500,000

Less Accounts receivable expected to be Uncollectible $125,000

Net Realizable value of account receivable $1,375,000

Therefore the net realizable value of accounts receivable after adjustment will be $1,375,000

5 0
3 years ago
Total interest paid on a 30-year straight note was $230,000 during the term of the loan. The annual interest rate was 6.6%. What
dsp73

Answer:

$116,161.616

Explanation:

Given that,

Total interest paid = $230,000

Time period = 30 year

Annual interest rate = 6.6%

Total interest on loan = Loan amount × Interest rate × Time period

$230,000 = Loan amount × 6.6% × 30 years

Loan amount:

=\frac{230,000}{0.066\times 30}

=\frac{230,000}{1.98}

      = $116,161.616

Therefore, the loan amount is $116,161.616.

3 0
3 years ago
What does the concept of limited liability posits?​
Maksim231197 [3]

Answer:

see below

Explanation:

The concept of limited liability is a confirmation that a corporation's assets are liabilities are distinct from those of shareholders. The concepts safeguard the shareholder's private properties should a business fail to meet its obligations.

Limited liability states that the liabilities of a shareholder is limited to the extent of his capital contribution. If the event of a dissolution, a shareholder's losses are capped to the share contribution. Their personal properties cannot be used to pay business debts should the business's assets be inadequate.

3 0
3 years ago
Which of the following describes the expected outcome of expansionary monetary policy in the short run?
Vaselesa [24]

Answer:

The correct answer is letter "A": higher employment, higher output, and a higher price level.

Explanation:

Expansionary policy is a macroeconomic concept that focuses on expanding the economy to counteract cyclical downturns. Expansionary policies can be used through monetary policy to expand the money supply or to increase government expending and tax cuts to stimulate the economy. Under this scenario, interest rates are lower and aggregate demand increases. In that case, employment, output, and price level will be higher. Though, the latter is dangerous since it could lead to high inflation.

7 0
3 years ago
Other questions:
  • What is the main job of the president of the us?
    15·2 answers
  • Acquired $30,000 cash from the issue of common stock. Purchased inventory for $15,000 cash. Sold inventory costing $9,000 for $2
    5·1 answer
  • An office manager orders office supplies. He pays $20 for pens, $15 for paper clips, $30 for paper, and $28 for legal pads. What
    12·1 answer
  • When we say that the classical model of decision-making specifies how managers should make decisions, this is another way of say
    8·1 answer
  • Illinois Woodworking Company is preparing its statement of cash flows using the indirect
    5·2 answers
  • Significant noncash investing and financing activities are disclosed because they
    10·1 answer
  • when creating content for an audience that may be visually impaired to a point be sure to choose_____?
    15·1 answer
  • An industry dominated by a few firms, where each of those firms recognizes that its own choices will affect the choices of its r
    14·1 answer
  • Collins Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The f
    14·1 answer
  • Required Information
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!