Problem 23-3B Sales mix strategies P3Sung Company produces two models of its product with the same machine. The machine has a capacity of 200 hours per month. Thefollowing information is available.Selling price per unitVariable costs per unitContribution margin per unitMachine hours per unitMaximum unit sales per monthStandard$6020$401 hour550 unitsPro$8030$502 hours175 unitsRequired1. Determine the contribution margin per machine hour for each model.2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month?3. Assume the maximum demand for the Standard model is 180 units (not 550 units). How many units of each model should thecompany produce? How much total contribution margin does this mix produce per month?

When there is constraint in any manufacturing facility for production of units, company tries to…

Answered: Selling price per unit Variable costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q.8 Thrombus produces ovens in several components in batches. The following data relate to one component: Annual demand 32,000 units Set up cost / batch P120 Annual rate of interest 12% Cost of production per unit P16 Calculate the Economic Batch Quantity for the company. A. 3,000 units B. 2,500 units C. 2,000 units D. None of the these
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One Two Three Estimated customer demand in units 700 600 800 Selling price per unit Variable cost per unit Machine-hours per unit $ 80 $ 65 $ 26 $ 45 $ 20 $ 35 2.5 3.0 1.25 The company has only 1,200 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Cholce $25,600 $24,600 $26,600 $23,600
Shoosta Ltd produces two different products with the following monthly data: A1 A2 TotalSelling price per unit $100 $12 Variable cost per unit $ 70 $ 3 Expected unit sales 21,000 14,000 35,000Sales mix 60 percent 40 percent 100 percentFixed costs $500,000 Assume the sales mix remains the same at all levels of sales. Round to the nearest unit of product, hundredth of a per cent, and nearest cent where appropriate. Required (show your workings for each question): f) Would the CVP Analysis technique be appropriate for multi-product businesses operating during this global pandemic? Explain.
QUESTION 17 K-9 Company produces and sells 2,000 units of a single product, a deluxe dog house. Selling price per unit $2,000 Variable cost per unit $1,000 Annual fixed cost $500,000 Assume that selling price per unit, variable cost per unit, and total fixed cost stay the same. Sales increase by 500 units to 2,500 units. The breakeven point will O stay the same. O decrease. O increase. Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro esc & # $ 14 4 1 2 Q W 3 E R 65⁰ % I T < C 6 Y 7 8 U - 9 O K 0 0
Question 20 Bell Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $33.00 Variable costs per unit. Direct material $6.00 Direct manufacturing labor $1.50 $0.25 Manufacturing overhead Selling costs $2.00 Annual fixed costs $111,000 The company sells 12,000 units. The contribution margin per unit is $23.25 $25.50 $14.00 $25.25
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PROBLEM 6 The following information pertains to AAA Manufacturing Company’s Product X: Annual Demand 33,750 units Annual cost to hold one unit of inventory P15 Setup cost (or the cost to initiate a production run P500 Beginning inventory of Product X 0 At present, the company produces 2,250 units of Product X per production run, for a total of 15 production runs per year. The Company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product X. At present, the company’s total annual inventory costs is If the EOQ model is used, the economic lot size is If the EOQ model is used, the number of production runs should be If the EOQ model is used, the total annual inventory costs, compared with that under present system, will increase (decrease)…
Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800. (1) Compute the weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin (3) Compute the number of units of each rpoduct that will be sold at the break-even point
QUESTION 4 Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on expected production and sales of 15 000 units are provided for analysis: Variable manufacturing cost Fixed manufacturing cost R1 185 000 R510 000 R5 per unit sold R130 000 Sales commission Fixed administration cost Sales R210 per unit Study the information provided above and answer the following questions independently: 4.1 Calculate the break-even sales value. 4.2 Calculate the sales volume required to achieve a profit of R 800 000. 4.3 Suppose Exxaro Limited is considering a decrease of 10% per unit in the selling price of the product with the expectation that it would increase sales volume by 10%. Is this a good idea? Motivate your answer with relevant calculations.

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