1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olchik [2.2K]
2 years ago
11

Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.9 pound

s of the material, S5 uses 2.4 pounds of the material, and G9 uses 5.4 pounds of the material. Demand for all products is strong, but only 58,400 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. K1 S5 G91 Selling price $ 167.40 $ 99.28 $ 210.02 Variable costs 89.00 76.00 149.00 Calculate the contribution margin per pound for each of the three products. Orders for which product should be produced and filled first, then second, and then third
Business
1 answer:
Stella [2.4K]2 years ago
3 0

Answer:

Childress Company

Orders for K1 should be filled first.

Orders for G9 should be filled second.

Orders for S5 should be filled third.

Explanation:

a) Data and Calculations:

                                                               K1            S5           G9

Direct materials per unit (pounds)       4.9           2.4           5.4

Materials available for production = 58,400

Selling price                                      $ 167.40  $ 99.28  $ 210.02

Variable costs                                       89.00     76.00      149.00

Contribution margin per unit           $  78.40  $ 23.28   $   61.02

Contribution margin per pound         $16          $9.70       $11.30

Orders for K1 should be filled first

Orders for G9 should be filled second

Orders for S5 should be filled third.

b) This order filling sequence will maximize the contribution margin per pound, ensuring the highest efficient use of the limited materials available for production.

You might be interested in
ABC Ltd. uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consum
viktelen [127]

Answer:

The Total Cost of Inventory is $4,024,000

Explanation:

The computation of the total cost is shown below:

= Purchase cost + ordering cost + carrying cost

where,

Purchase cost = Annual consumption × Cost per unit\

                       = 80,000 × $50

                       = $4,000,000

Ordering cost = (Annual demand ÷ EOQ) × Cost to place one order

                       = (80,000 ÷ 8,000) × $1,200

                       = $12,000

Carrying cost = (EOQ ÷ 2) × carrying cost percentage × Cost per unit

                      = (8,000 ÷ 2) × 6% × $50

                      = $12,000

Now put these values to the above formula  

So, the value would equal to

= $4,000,000 + $12,000 + $12,000

= $4,024,000

8 0
3 years ago
One of the benefits of ics is that it provides an orderly, systematic ___________ process.
mr_godi [17]

The correct answer is planning.

The benefits of ICS stands for Incident command system.

ICS helps  to ensure that the efficient use of resources. The safety of responders, community and efficient use of resources. ICS can be utilized as a natural disaster or as Human caused hazard or a technological hazard.

ICS has some principles and features which include resources and facilities, resource management, accountability and planning which include management.

ICS helps to ensure that there is full utilization of all incident by making sure that there is integrated communication, and by maintaining span control which  is manageable.

4 0
3 years ago
Read 2 more answers
On January 2, 2014, Best Beverages acquired 45 percent of the stock of Better Bottlers for $30 million in cash. Best Beverages a
Alex787 [66]

Answer:

Calculation of 2014 equity in net income

Better Bottler's net income                      $1,125,000

($2,500,000* 45%)  

Less: Amortization of patents and           $450,000

trademarks  revaluation

(160-150* 1000,000/10 at 45%)

Less: Amortization of brand names          $270,000

($9000,000 /15 at 45%)

Equity in net income of Better bottles   $405,000

                                Journal entries

Description                                         Debit         Credit

Investment in better bottles        $405,000

Equity in net income of better bottle               $405,000

Cash                                                 $292,500

($650,000 * 45%)

investment in better bottles                             $292,500

b) Calculation of investment balance

Investment balance, Jan 2,2014                           $30,000,000

+ Reported income less dividends                         $5,400,000

($25,000,000 equity - $13,000,000 retained

earnings) * 45%  

-  4 yr of revaluation write off                                

($450,000 * 4)                                                         $1,800,000

($270,000 *4)                                                         <u>$1,080,000</u>

Investment balance, Dec 31, 2017                      <u>$32,520,000</u>

4 0
3 years ago
Hellppp ASAP please I need help with business I have another question to
GrogVix [38]

Answer:

Well what are the options

5 0
3 years ago
Houseal Corporation has provided the following data from its activity-based costing system:
pishuonlain [190]

Answer:

Product margin per unit= $10.19

Explanation:

Giving the following information:

Activity Cost Pool Total Cost Total Activity

Assembly $ 613,250 55,000 machine-hours

Processing orders $ 46,170 1,500 orders

Inspection $ 146,110 1,900 inspection-hours

First, we need to calculate the estimated overhead rate for each activity cost pool:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Assembly= 613,250/55,000= $11.15 per machine hour

Processing= 46,170/1,500= $30.78 per order

Inspection= 146,110/1,900= $76.9 per inspection hour

We will calculate the total cost of production and then the unitary cost to determine the product margin:

Total cost= direct material + direct labor + allocated overhead

Selling price per unit $ 113.70

Direct materials cost per unit $ 48.14

Direct labor cost per unit $ 11.62

Annual unit production and sales 360

Annual machine-hours 1,040

Annual orders 60

Annual inspection-hours 30

Total cost= 48.14*360 + 11.62*360 + (1,040*11.15 + 60*30.78 + 30*76.9)= 37,263.4

Unitary cost= 37,263.4/360= 103.51

Product margin= selling price - unitary cost= 113.70 - 103.51= $10.19

3 0
3 years ago
Other questions:
  • A commercial bank sells a treasury bond to the federal reserve for $100,000. (assume that all proceeds from this bond sale are l
    11·1 answer
  • Forest ranger in Arizona and New Mexico in the early 1900s who advocated preservation of nautre's integrity. He wrote "...to kee
    11·2 answers
  • Chelsea's house is for sale, and she is selling it through a real estate agent. The house is listed, and any licensed agent may
    10·1 answer
  • Which action is specifically recommended to enhance your credibility in the field of accounting?
    8·2 answers
  • As a gardener, Joey earns $19.20 per hour. He earns double time for work on Saturdays. Last week, he worked 25 regular hours plu
    6·1 answer
  • You can receive 400,000 five years from today or 1,000,000 thirty years from today. what interest rate makes them equivalent?
    11·1 answer
  • Suppose Alex and Becky are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix t
    5·1 answer
  • There are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the f
    14·1 answer
  • Give description of a recent (2019-2021)example of how this problem has displayed in Southafrica
    15·1 answer
  • ______ occurs when strong points are made at the end of a message and are considered most persuasive.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!