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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.

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Organizational culture are simply regarded as a system of shared beliefs and values that rises within an organization and shapes the behavior of its members.

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Division of labor or simply called work specialization is the sharing of work among employees of an organization.

It allows arrangements of work so as to have greater efficiency, complex work effort to be divided out and performed by experts and also task is done by different people.

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5 0
2 years ago
To satisfy MSRB disclosure requirements for new municipal issues, a customer would be provided with a copy of the: A legal opini
Lorico [155]

Answer:

B. Official note of sale.

Explanation:

An official note of sale is a disclosure document for new issue municipal bonds. These bonds, when sold by the issuer, must ensure that an officail not of sale is distributed to all purchasers before or at the settlement. The notice of sale is distributed by underwriters.

Cheers.

7 0
4 years ago
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Setler [38]

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3 0
3 years ago
Which underlined phrase is a perfect participial phrase? recreation areas are divided into three categories, indicating the main
Tomtit [17]
Since there are no indicated phrases that are underlined, I had to choose which sentence contains the perfect participle phrase and that would be sentence 2: Having determined a need to offer opportunities for sports and leisure activities, the city created several recreation areas. The perfect participle phrase in this sentence is this: Having determined a need to offer opportunities for sports and leisure activities.
3 0
3 years ago
Read 2 more answers
On December 31, 2021, Interlink Communications issued 5% stated rate bonds with a face amount of $113 million. The bonds mature
Kazeer [188]

Answer:

Bond Price = $97.4457408 million rounded off to $97.45 million

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 113 million * 0.05 = 5.65 million

Total periods (n) = 30

r or YTM = 0.06 or 6%

The formula to calculate the price of the bonds today is attached.

Bond Price =5.65 * [( 1 - (1+0.06)^-30) / 0.06]  +  113 / (1+0.06)^30

Bond Price = $97.4457408 million rounded off to $97.45 million

4 0
3 years ago
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