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Alchen [17]
3 years ago
10

Uva Systems Inc. has a limited amount of direct material available for products 1A1 and 2B2. Each unit of 1A1 has a contribution

margin of $12 and each unit of 2B2 has a contribution margin of $30. A unit of 2B2 uses three times as much direct material as a unit of 1A1. What is Uva's most profitable sales mix, assuming there is unlimited demand for either product
Business
1 answer:
a_sh-v [17]3 years ago
7 0

Answer:

Make All 1A1

Explanation:

Calculation to determine What is Uva's most profitable sales mix, assuming there is unlimited demand for either product

First step is to calculate the Contribution margin of 1 unit of 2B2

Contribution margin of 1 unit of 2B2 = 1 x $30

Contribution margin of 1 unit of 2B2 = $30

Second step is to calculate the Contribution margin of 3 units of 1A1

Contribution margin of 3 units of 1A1 = 3 x $12

Contribution margin of 3 units of 1A1 = $36

Based on the above calculation for both Contribution margin of 1 unit of 2B2 and Contribution margin of 3 units of 1A1 we can see that Contribution margin of 3 units of 1A1 is the most profitable sales mix.

Therefore Uva's most profitable sales mix, assuming there is unlimited demand for either product is Make All 1A1

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On January 1, 2021, Splash City issues $340,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and
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On 30th June 2021

Dr  interest expense      $ 15,542  

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On 31st   December  2021

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Explanation:

The bond issued at a discount is the first bond whose cash proceeds of $310,831 were less than face value of $340,000.

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4 years ago
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Letter C is correct. <u>Socially complex; rare.</u>

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