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mr Goodwill [35]
3 years ago
13

The constraint at Johngrass Corporation is time on a particular machine. The company makes three products that use this machine.

Data concerning those products appear below: VT UV LQ Selling price per unit $335.09 $228.37 $199.12 Variable cost per unit $259.44 $173.26 $159.79 Minutes on the constraint 6.60 3.40 4.60 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource
Business
1 answer:
Brums [2.3K]3 years ago
7 0

Answer:

$8.55 per minute

Explanation:

The computation of willing to pay to acquire more of the constrained resource is shown below:-

= (Selling price - Variable cost) ÷ Minutes on the constraint

= ($199.12 - $159.79) ÷ 4.60

= $39.33 ÷ 4.60

= $8.55 per minute

Therefore for computing the willingness to pay to acquire more of the constrained resource we simply applied the above formula.

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Mashcka [7]

Answer:

predetermined manufacturing overhead rate  $1.23

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

We will distribute the expected overhead cost along a cost driver.

In this case we are asked to use direct labor cost:

estimated overhead 270,300

estimated labor         219,800

overhead rate = 270,300 / 219,800 = 1,229754 = 1.23

7 0
3 years ago
Samantha just won a settlement with an insurance company, which entitles her to receive payments of $20,000 at the beginning of
AnnyKZ [126]

Answer:

$226,711.90

Explanation:

See attached file

4 0
3 years ago
he Steel Mill is currently operating at 84 percent of capacity. Annual sales are $28,400 and net income is $2,250. The firm has
nignag [31]

Answer:

-911.51 the debt will decrease if sales increase 12%

Explanation:

sales: 28,400

increase of 12%

new sales:  31,808

<em><u>profirt margin:</u></em>

2,250/28,400 = 0.0792 = 7.92%

income: 31,808 x 7.92% = 2,519.19

retained earnigns grow: (1-payout ratio) = 0.6

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8 0
3 years ago
Arctic Coolers provides the following information relating to its cooler, Blizzard:Selling Price$60Direct materials35Direct manu
jeka94

Answer:

B. $15

Explanation:

Selling Price$60

Total Variable cost = Direct materials+Direct manufacturing labor+Variable manufacturing overhead

Total Variable cost = 35+10+4

Total Variable cost = 45

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3 0
3 years ago
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Answer: The use of promotional signage

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4 0
3 years ago
Read 2 more answers
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