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
vodomira [7]
2 years ago
12

Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6;

the unit contribution margin for Model P-4 is $14. Each model must spend time on a special machine. The firm owns two machines that together provide 4,000 hours of machine time per year. Model K-3 requires 15 minutes of machine time; Model P-4 requires 30 minutes of machine time. What is the contribution margin per unit of scarce resource (machine time) for Model K-3?
Business
1 answer:
tresset_1 [31]2 years ago
7 0

Answer:

Contribution per unit of scare resource (in hour) = $24 per hour

Explanation:

The question falls under the limiting factor analysis

<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that </em><em>it maximizes the contribution per unit of the scare resource.</em>

Therefore Santario Company should allocate the machine hours to maximize the contribution per unit of machine hour.

Contribution per unit of scare resource is determine as follows:

Contribution per unit of scare resource for Model K-3

Contribution per unit of Model K-3 = $6

Machine time per unit =  15 minutes

<em>Contribution per unit of scare resource in minutes</em>

=Contribution per unit/Machine time per unit

= 46/15 minutes

= $0.4 per minute

Contribution per unit of scare resource (in hour)

$0.4 per minutes× 60

= $24 per hour

You might be interested in
Skills that can be used in any occupation are ___________ skill. (soft or hard)​
mojhsa [17]

Answer: The answer is hard skills. Hope this helps :)

Explanation:

In most jobs being teachable is better and not all occuaptions include communication & human services.

8 0
2 years ago
Is debt finance the same as debt capital?
sveticcg [70]

Answer:

no they are not the same hope this helps

7 0
3 years ago
The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following
tamaranim1 [39]

The answers to the question are:

  • The machine that is the constraint is the machine c.
  • The product m = 80 units and n = 80 units
  • Net profit = $3600

<h3>1. How to solve for the constraint of the machine</h3>

We have to solve for the workload of the machines

For A. 20*100 = 2000

For B, 5 * 100 + 10 *80

= 500 + 800 = 1300

For Machine C = 15 * 100 + 15 * 80

= 1500 + 1200

= 2700

The time at the workstation in c is more than the constant time of 2400, hence the constraint that we have is machine c.

b. 2400- 1200 = 1200

The product mix would be 1200/15

= 80

Hence the product mix m = 80 units and that of n = 80 units

<h3>c. The total net profit</h3>

80*$90 = 7200 , 80 * 105 = 8400

7200 + 8400

= 15600

The net profit = 15600 - 12000

= $3600

Read more on net profit here:

brainly.com/question/15530787

#SPJ1

7 0
1 year ago
Katie is looking over some of the product histories for the company. She has noticed that many more products have been rendered
valkas [14]

Answer:C. It makes it more difficult for the company to define an appropriate time period.

Explanation: Obsolete Items or products are products are no longer useful or relevant,it can be used to describe a product whose Quality has adversely depleted making it not useful.

With the information,since the products are fast becoming Obsolete than when compared to 10years ago,it makes it more difficult to determine or arrive at the appropriate time period for the company to keep the product before it becomes obsolete.

6 0
3 years ago
Is a uniform law adopted by all states that facilitates commerce?
tensa zangetsu [6.8K]
The U.S. Congress passes federal statutes. They do not apply to all states. The uniform law adopted by all states that facilitates commerce. ... Case law is based on the decisions made by those who run administrative agencies.
4 0
2 years ago
Other questions:
  • Who owns the factors of production?
    13·2 answers
  • What characteristics would make an encryption absolutely unbreakable? what characteristics would make an encryption impractical
    8·1 answer
  • Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist
    12·1 answer
  • Compute the payback period for each of these two separate investments:
    14·1 answer
  • Jackson Company had a net increase in cash from operating activities of $10,000 and a net decrease in cash from financing activi
    8·1 answer
  • Cobb Company produces 8,000 parts each year, which are used in the production of one of its products. The unit product cost of a
    6·1 answer
  • Pittman Framing's cost formula for its supplies cost is $1,110 per month plus $11 per frame. For the month of November, the comp
    12·1 answer
  • In analyzing the chart, what is the relationship between fees and dollar advanced? What do you think that payday lenders base th
    11·1 answer
  • If there are 25 number 05 buyers what will be market demand​
    12·1 answer
  • In a competitive market equilibrium, the allocation of the social surplus is such that ____________.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!