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xxTIMURxx [149]
3 years ago
10

Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its aver

age costs per unit are as follows:
Average cost per unit


Direct Materials $4.60

Direct Labor $4.20

Variable manufacturing overhead $1.40

Fixed manufacturing overhead $8.00

Fixed selling expense $3.20

Fixed administrative expense $1.70

Sales commissions $0.70

Variable administrative expense $0.65

If the selling price is $23.00 per unit, the contribution margin per unit sold is closest to:


A: $17.45

B: $0.30

C: $14.65

D: $5.80
Business
1 answer:
vampirchik [111]3 years ago
4 0
I thank the answer is $17.45
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The economic order quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs include
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Answer:

Check the explanation

Explanation:

The above question is based on a non-linear programming model, to answer this question, there will be a need to determine the optimal order quantities of the three different Ferns with diverse values of annual demand, item cost as well as order cost objective of the non-linear programming model is to minimize the overall annual cost.

Step 1: Setup a spreadsheet on Excel, as shown in the first and second attached images below:

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The Solver dialogue box will appear. Enter the decision variables, objective function and the constraints, as shown in the third attached image below:

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Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha
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Answer:

Proposal A: 5,455 units

Proposal B: 5,770 units

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For proposal A:

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(P-VC)*n-FC = 0\\(24-13)*n-60,000 = 0\\n=5,454.5\ units

For proposal B:

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Variable Costs = $11 / unit

Selling Price = $24 / unit

(P-VC)*n-FC = 0\\(24-11)*n-75,000 = 0\\n=5,769.2\ units

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3 years ago
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Answer:

Self-Verification

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