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mylen [45]
3 years ago
13

Benoit company produces three products—a, b, and

Business
1 answer:
Lana71 [14]3 years ago
5 0
My answer is: Produce Product C first, then followed by Product A. to maximize contribution margin. Product B will not be produced since the maximum number of pounds has already been used in producing Products C and A.

<span> <span> </span><span><span> PER UNIT
</span> <span> PRODUCT                              A               B                C
</span> <span> SELLING PRICE                   80              62                81
</span> <span> VARIABLE EXPENSES
</span> <span> DIRECT MATERIALS            24             18                  9
</span> <span> OTHER VAR EXP.                 24             25.4             43.65
</span> <span> TOTAL VAR EXP                   48             43.4             52.65
</span> <span> CONTRIBUTION MARGIN    32             18.6             28.35
</span> <span> <span>CM RATIO </span>                            0.4             0.3                0.35
</span> <span> </span> <span>
COMPANY CAN SELL 800 UNITS OF EACH PRODUCT PER MONTH.
</span> <span> SAME RAW MATERIAL IS USED IN EACH PRODUCT.
</span> <span> MATERIAL COSTS 3 PER POUND W/ A MAX OF 5,000 POUNDS EACH MONTH
</span> <span> </span> <span>
PRODUCT      DM     <span>UNIT COST </span>        NO. OF LBS
</span> <span> A                      24            3                             8
</span> <span> B                      18            3                             6
</span> <span> C                        9            3                             3
</span> <span> </span> <span> PRODUCT NO. OF LBS/UNIT     MAX UNITS      TOTAL NO. OF LBS
</span> <span> A                       8                                800                    6400
</span> <span> B                       6                                800                    4800
</span> <span> C                       3                                800                    2400
</span> <span> TOTAL                                                                         13600
</span> <span> LIMITATION: 5,000 POUNDS PER MONTH ONLY.

</span></span></span><span> <span> </span><span><span> <span>required: </span>
</span> <span> <span>1. calculate the contribution margin per pound of the constraining resource for each product. </span>
</span> <span> 2. which orders would you advise the company to accept first, those for a, b, or c? which orders second? third?
</span> <span> </span> <span>
</span></span></span><span>PLS. SEE ATTACHMENTS FOR MY FULL COMPUTATIONS. </span>

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Explanation:

Supply chain operations refers to the structures, systems, and processes that are put in place for the execution of the flow of goods and services from the supplier to the customer.

The outcomes when a manager views supply chain operations as a collection of processes rather than a collection of departments or functions include:

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Assume that Hotel Excellent uses activity-based costing to allocate hotel overhead to guests. In Hotel Excellent, if the budgete
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Explanation:

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This question can be solved by a simple rule of three.

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27,000 hours - $900,000.

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On January 2, 2009, L Co. issued at par $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. No bonds
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Answer:

The correct answer is $1.2 per share.

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According to the scenario, the computation of the given data are as follows:

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= $400

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Answer:

Farris Corporation

The net operating income for the month under absorption costing is:

= $17,050.

Explanation:

a) Data and Calculations:

Selling price $ 128

Units in beginning inventory 0

Units produced 9,150

Units sold         8,750

Units in ending inventory 400

Variable costs per unit:

Direct materials $ 22

Direct labor $ 64

Variable manufacturing overhead $ 10

Variable selling and administrative expense $ 14

Fixed costs:

Fixed manufacturing overhead $ 137,250

Fixed selling and administrative expense $ 9,200

Direct materials                               $ 22

Direct labor                                     $ 64

Variable manufacturing overhead $ 10

Variable costs per unit                   $ 96 * 9,150 = $878,400

Fixed manufacturing overhead                             $ 137,250

Total production cost                                           $1,015,650

Product cost per unit = $111

Cost of goods sold = $971,250 ($111 * 8,750)

Period costs:

Variable selling and administrative expense $ 14 * 8,750 = $122,500

Fixed selling and administrative expense $ 9,200

Income Statement under absorption costing

Sales revenue ($128 * 8,750) =    $1,120,000

Cost of goods sold                            971,250

Gross profit                                      $148,750

Period costs:

Variable selling and administrative 122,500

Fixed selling and administrative         9,200

Total period costs                           $131,700

Net operating income                      $17,050

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