Answer and explanation:
a.
the table below shows the impact of dropping beta product
Loss of Contribution Margin if Beta is Dropped (75,000*64) -$4,800,000
Traceable Fixed Manufacturing Overhead (123,000*33) $4,059,000
Incremental Contribution Margin from Additional Alpha Sales (15,000*72)
$1,080,000
Increase in Net Operating Income if Beta is Dropped $339,000
Notes:
Contribution Margin Per Unit (Beta) = 150 (Selling Price) - 15 (Direct Material) - 28 (Direct Labor) - 20 (Variable Manufacturing Overhead) - 23 (Variable Selling Expenses) = $64 per unit
Contribution Margin Per Unit (Alpha) = 195 (Selling Price) - 40 (Direct Material) - 34 (Direct Labor) - 22 (Variable Manufacturing Overhead) - 27 (Variable Selling Expenses) = $72 per unit
check the attached files for additional details
where 9=b, 10=c, etc
Answer:
Allocative efficiency is about distributing or allocating resources in the best possible manner. E.g. in order to fight the current pandemic, more resources ($) is allocated to different health care institutions.
Productive efficiency is about how a company or a person uses the resources that it has in order to produce the greatest amount of benefits at the lowest possible cost. E.g. in a hospital, if a doctor is able to treat 15 patients per day, his/her productive efficiency will be higher than another doctor that only treats 10 patients per day.
Explanation:
Conversion costs = Direct labor + Factory overhead
7,800,000 = Direct labor + 5,400,000
Direct labor = $2,400,000
First option is the correct option.
I know this much only.
I think it is D ...... sorry if it is wrong .-.