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
kolbaska11 [484]
3 years ago
14

Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The va

riable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales 7 hours; and Wales 1 hour.
Which product has the highest contribution margin per machine hour?

a. Bales
b. Tales
c. Bales and Tales have the same
d. Wales
Business
1 answer:
JulijaS [17]3 years ago
3 0

Answer:

Option D

Wales

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 with the highest contribution per unit of the scare resource </em>

The contribution per unit = selling  price - unit variable cost

Bales- 55- 20= 35  per unit

Tales-  78- 50 = 28  per unit

Wales - 32- 15 = 17  per unit

Contribution per hour = contribution per unit/machine hour required

Product        Cont/unit      machine hr /unit      cont/hr     Ranking

Bales                 35                   5                         7                   2nd

Tales                 28                 7                          4                    3rd

Wales                17                  1                            17                   1st              

<em>Note that the contribution per machine is arrived as contribution per unit divided machine hours required per product. </em>

You might be interested in
Simple difinition of organized​
svp [43]

Answer:

Make arrangements or preparations for (an event or activity)

5 0
3 years ago
The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the
insens350 [35]
The most likely result of this price control would be that the <span>demand for bread will fall, which could result in an excess supply. his excess supply in the market would ultimately force the hand of the manufacturers to stop the production of bread. I hope that this is the answer that has come to your help.</span>
3 0
3 years ago
Read 2 more answers
A person who ensures that people adhere to the definitions for the master data in their organizational units is called a(n) ____
pashok25 [27]

Answer:Data steward

Explanation:

8 0
2 years ago
All of the following are organization-directed benefits associated with offering unconditional guarantees except: a. the guarant
kotykmax [81]

Answer:

All of the following are organization-directed benefits associated with offering unconditional guarantees except:

a. the guarantee provides a means to avoid bankruptcy.

Explanation:

Providing or offering customers unconditional guarantees does not help the company to avoid bankruptcy.  Bankruptcy arises from inadequate financing resulting from overtrading.  Importantly, offering guarantees to customers communicates a clear performance goal to employees to improve service delivery to customers.

3 0
3 years ago
Required information Subsequent Events-Two Types Read the overview below and complete the activities that follow Oftentimes a CP
Drupady [299]

Answer:

Explanation:

Situation                                                            Type Logic

During the audit, a customer with a large A/R balance at year end declares bankruptcy Type 1 Facts were available on balance sheet date

a lawsuit…...thereafter Type 1 Facts were available on balance sheet date

A flood damages….after year end Type 2 Facts were not available on balance sheet date

Conditions that….after the balance sheet date Type 2 Facts were not available on balance sheet date

Additional evidence….balance sheet date Type 1 Facts were available on balance sheet date

7 0
3 years ago
Other questions:
  • If you see someone moving furtively around your home what should you do
    5·1 answer
  • How do fears of future economic problems affect gdp?
    13·2 answers
  • A neighborhood recreation program serves a total of 280 children who are either 11 years old or 12 years old. the sum of the chi
    11·2 answers
  • Geraths Windows manufactures and sells custom storm windows for three season porches and also provides installation service for
    14·1 answer
  • Both Nestlé and Cadbury determined that a liquid chocolate confection would be one way to address the issue of India's hot weath
    5·1 answer
  • Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginnint i
    13·1 answer
  • An investment advisory firm does its own research, using a group of dedicated employees and has a separate staff of investment a
    5·1 answer
  • Assume you can currently exchange one U.S. dollar for one hundred Japanese yen. Also assume the inflation rate will be 2.5 perce
    14·1 answer
  • 1. What percent of respondents say they would<br> have NO way to cover a $400 expense?
    10·1 answer
  • What is a traditional career?
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!