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
andriy [413]
3 years ago
14

Omega Company reported the following information for the company's two products: Product X Product Y Selling price per unit $ 35

$ 25 Variable cost per unit 20 15 Assume that 75,000 machine hours are available; product X takes 4 machine hours to produce, and product Y takes 2 machine hours to produce. The company can sell all it can make of either product. Which of the following statements is true?A) Product Y should be produced because more of it can be produced.B) Product Y should be produced because it will produce greater total profit.C) Product X should be produced because it provides a greater contribution margin.D) Both products provide the same total profit.
Business
2 answers:
Elena L [17]3 years ago
5 0

Answer:

Omega Company

B) Product Y should be produced because it will produce greater total profit.

Explanation:

If only Product X is produced, the total profit it will produced is:

Selling price = $35

Variable Cost = $20

Contribution = $15

Total Contribution = $15 x 75,000/4 = $281,250

If only Product Y is produced, the total profit will be:

Selling price = $25

Variable cost = $15

Contribution = $10

Total Contribution = $10 x 75,000/2 = $375,000

Product Y therefore produces a greater total profit.  This is because the fixed cost will remain the same if there are no avoidable elements.

dexar [7]3 years ago
4 0

Answer:

B) Product Y should be produced because it will produce greater total profits

Explanation:

The contribution margin per unit determines the contribution per unit for a given product. The contribution margin in limited resources is calculated by dividing contribution margin by per unit scarce resource. The product X contribution margin is $15 ($35 - $20) and product Y contribution margin is $10. Keeping the scarce resource if machine hours in view the contribution margin is

Product X = $15 / 4 machine hours = $3.75 per machine hour

Product Y = $10 / 2 machine hours = $5 per machine hour

The Omega Company should produce more of product Y because it uses less machine hours and is more profitable.

You might be interested in
HELP FAST PLEASE!!!!! Information you should consider when researching and comparing careers include all of the following except
Butoxors [25]

Answer:

What your friends are doing.

Explanation:

The reason why the answer is what your friends are doing, is because it is in most cases, unnecessary. Even though it might seem like it is necessary, but if you really think about it, you are looking for jobs FOR YOU and you alone. What your friends are doing for their career, will most likely differ from what you would want to do.

7 0
3 years ago
A direct participation program shows the following operation results: Revenues: $3 million Operating expense: $1 million Interes
stiks02 [169]

Answer:

The cash flow from program operation is $1,600,000.

Explanation:

Prepare the Cash Flow from Operating Activities Section to determine the cash flow from program operation.

<u>Cash Flow from Operating Activities</u>

Revenue                                                     $3,000,000

Less Expenses :

Operating Expenses           $1,000,000

Interest expense                   $200,000

Management fees                 $200,000

Depreciation                       $3,000,000  ($4,400,000)

Operating Profit / (Loss)                            ($1,400,000)

Add Back Depreciation                             $3,000,000

Operating Cash flow                                  $1,600,000

3 0
3 years ago
Which of the following is an example of irregular income? a) A full-time job b) A part-time job c) A graduation gift d) Both b a
alexandr402 [8]
Which of the following is an example of irregular income?
A. A full-time job
B. A part-time job
C. A graduation gift
D. Both b and c

The answer is C
8 0
3 years ago
Read 2 more answers
Why is a hotel room a perishable product?
Anton [14]

E

Is the correct answer

7 0
3 years ago
Read 2 more answers
McBride’s Dairy has 200 gallons of cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off
PtichkaEL [24]
Uhh I think C idk really
8 0
3 years ago
Other questions:
  • Your mortgage is a 30-year fixed at 8% on $150,000. You are considering refinancing at 3.5% fixed for 30 years. The bank charges
    6·2 answers
  • A student is conducting a research project that involves using a survey. the survey asks participants about their highest level
    7·1 answer
  • For the Dividend Growth Model, the equation can be written as follows: P0 = =D1/(RE – g). How can this equation be rearranged?
    10·1 answer
  • If the economy is at equilibrium above potential output, there is a(n) _____ gap, and _____ fiscal policy is appropriate
    7·1 answer
  • Mighty Corporation manufactures end tables. Each end table requires .50 direct labor hours in its production. Mighty Corporation
    8·1 answer
  • During its first month of operations in March, Volz Cleaning, Inc., completed six transactions with the dollar effects indicated
    13·1 answer
  • The advantages of personal financial planning include:
    11·1 answer
  • New York City is the most-visited city in the world. <br><br> A. True <br> B. False
    7·1 answer
  • Assets for Smith Company are $30,000. Liabilities are $20,000. What is the Equity for Smith Company?
    7·1 answer
  • The shona of zimbabwe organized to resist european imperialism under the leadership of?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!