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
dezoksy [38]
3 years ago
5

Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 130,000 units of basic, 508,000

units of classic, and 230,000 units of deluxe. Bricktan has limited production capacity of 134,000 hours. It can produce 10 units of basic, 8 units of classic, and 4 units of deluxe per hour. Contribution margin per unit is $15 for the basic, $25 for the classic, and $55 for the deluxe. What is the total contribution margin if Bricktan chooses the most profitable sales mix?
Business
1 answer:
katrin [286]3 years ago
7 0

Answer:

the total contribution margin if Bricktan chooses the most profitable sales mix is $27,000,000

Explanation:

It is important to note that the limiting factor identified is the production hours.

<em>Step 1 Calculate Contribution per limiting factor of each product</em>

Basic

1 unit requires 0.1 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

                                                    = $15/0.10

                                                    = $150

Classic

1 unit requires 0.125 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

                                                    = $25/0.125

                                                    = $200

Deluxe

1 unit requires 0.25 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

                                                    = $55/0.25

                                                    = $220

<em>Step 2 Rank the products </em>

1st = Deluxe

2nd = Classic

3rd = Basic

<em>Step 3 Determine the production mix</em>

Product                  Total hours demanded                Balance

Capacity                                                                       134,000

Deluxe                   (230,000×0.25) =  57,500             76,500

Classic                   (508,000×0.125) = 63,500             13,000

Basic                      (130,000×0.1)     =  13,000                  0

<em>Step 4 Calculate total contribution</em>

Deluxe                   (230,000×$55) =  12,650,000          

Classic                   (508,000×$25) =  12,700,000            

Basic                      (130,000×$15)   =  1,650,000

Total                                                 =  27,000,000              

You might be interested in
Byron agrees to sell to Charity, for $1,500, a remote parcel of land.They believe the land to be worthless, but beneath it is a
DedPeter [7]

Answer:

D) enforce the contract.

Explanation:

Neither party knew about the gold mine before the deal was made, Byron and Charity even thought it was worthless. If Charity by accident, chance or luck discovered the gold mine, then she is entitled to it. Even f Byron wants to cancel the deal, he can't because Charity acted on good faith and the discovery of the gold mine was not something planned or intended.

For example, if I like an antique at a yard sale and I purchase it at $5, and then by chance someone that knows about antiques tells me that it is really expensive, a made a lot of money and the previous owner doesn't have the right to cancel the sale.  

6 0
3 years ago
My account is not working right, I need someone to get ahold of me or fix it. We ordered brainly plus and I've been charged but
Harman [31]

Answer: Have you tried to restart the app or browser? How long ago did you purchase it? If it was today or yesterday you may need to wait a bit.

Explanation: It takes time for the transaction to go through. Trust me, my mom works at a bank.

7 0
2 years ago
Read 2 more answers
Overapplied manufacturing overhead would result if:
Ksivusya [100]
<span> Manufacturing overhead describes the difference between manufacturing overhead cost applied to work in process and manufacturing overhead cost actually incurred during a period.</span>
Over-applied manufacturing overhead would result if the manufacturing overhead cost applied to work in process is more than the manufacturing overhead cost actually incurred during a period. So, in over-applied overhead the applied overhead is bigger than the actual overhead. 
4 0
3 years ago
What unknown factors might make it hard to predict the future size of a particular country's human population?
zvonat [6]
There are a lot of factors that might affect to the prediction of the future sizze of a particular country's human population and makes it even harder because of the unknown factors. some may rely to the population of the country from the past years or even the past generations. future generations can make a difference in every way possible.
4 0
3 years ago
Stan, a salesperson for Trucks &amp; Autos, promises Uri a certain car will give him a "smooth ride." Stan offers a test drive,
3241004551 [841]

Answer:

C, none of the choices

Explanation:

from the qeustion, it can be seen that Uri was offered a test ride of the car but he clearly refused. For him to have bought that car without a test drive and later realise the car has a faulty suspenion, he cannot rescind the contract on any of the bases because if he had agreed to the test drive, he would have found out about the faukty suspension and woudn't have bought that car.

It is clearly Uri's fault that he ended up with a car that has a faulty susppension. this isn't a case of fraud or mistake on the part of Stan, neither did Stan unduely influence him to buy the car according to the question.

Cheers.

4 0
3 years ago
Other questions:
  • helen harrison creates an instrument containing the words "pay jose sanchez" and her signature. this is a? endorsement and creat
    7·1 answer
  • The comparison universe is not:______.
    7·1 answer
  • The Rogers Corporation has a gross profit of $784,000 and $314,000 in depreciation expense. The Evans Corporation also has $784,
    6·1 answer
  • If the fed believes the economy is about to fall into​ recession, it should
    12·1 answer
  • A court ruling against the wrongful dismissal of employees is a development in the _____ component of the general
    13·1 answer
  • Monthly production costs in Dilts Company for two levels of production are as follows.
    12·1 answer
  • Which of the following statements is not true: Multiple Choice Accounts receivable are increased by billings to customers. Accou
    10·1 answer
  • The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 1
    8·1 answer
  • The process of analyzing the tasks necessary for the production of a product or service is called ______.
    6·1 answer
  • Describe the advantages and disadvantages of advertising and other promotional tools.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!