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maxonik [38]
3 years ago
10

For each of the following products and services, indicate whether it is more likely produced in a process operation or in a job

order operation.
1. Beach towels
2. Bolts and nuts
3. Lawn chairs
4. Headphones
5. Designed patio
Business
1 answer:
lord [1]3 years ago
3 0

Answer:

Process operations are for when there are multiple goods to be produced. These products normally have the same specifications so can be mass produced.

This is different from Job order operation which is used when a single good is product. It is usually used for customized goods.

Process operations:

  • Beach towels
  • Bolts and nuts
  • Lawn chairs
  • Headphones

Job Order operation

  • Designed patio.
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Explanation:

Giving the following information:

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Fixed overhead= $11.00.

New costs:

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To determine whether the changes increase profit or not, we need to calculate the unitary contribution margin per unit for both options:

Contribution margin= selling price - unitary variable cost

Actual Contribution margin:

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New contribution margin:

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