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Lady bird [3.3K]
3 years ago
9

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

e. Data concerning those products appear below: WX KD FS Selling price per unit $ 335.18 $ 228.46 $ 199.21 Variable cost per unit $ 259.26 $ 173.08 $ 159.61 Minutes on the constraint 7.50 4.30 5.50 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:
snow_lady [41]3 years ago
3 0

Answer:

7.20

Explanation:

The computation of willing to pay amount is shown below:

= (Selling price per unit - variable cost per unit) ÷ (Minutes on the constraint)

For Product WX

= ($335.18 - $259.26) ÷ (7.50)

= 10.12

For Product KD

= ($228.46 - $173.08) ÷ (4.30)

= 12.88

For Product FS

= ($199.21 - $159.61) ÷ (5.50)

= 7.20

So based on rank, the product FS should be used as it has third rank i.e 7.20

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3 years ago
Using a single plantwide rate from question 25, the factory overhead allocated per unit of Product A in the Painting Department
fiasKO [112]

Answer:

a. $236.32 per unit

Explanation:

The Full question is "Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Overhead Total Direct Labor Hours DLH per Product A B Painting Dept. $250,000 10,000 16 4 Finishing Dept. 75,000 12,000 4 16 Totals $325,000 22,000 20 20"

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8 0
3 years ago
How do economists define marginal benefit for an individual
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Answer:

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4 years ago
Palmer Company's beginning inventory consists of 1,000 units at $1.00 per unit. During the year, the company purchases 5,000 uni
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Answer:

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According to the weighted average cost method, all units on inventory must be priced equally. If the company had 1,000 units at $1.00 and purchased an additional 5,000 units for $5,800, the total cost per unit is:

C=\frac{\$1.00*1,000+\$5,800}{5,000+1,000}\\ C=\$1.1333333

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4 years ago
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