Question 1 ACME Widgets produces three products: widgets A, B, and C. The following information is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 ACME Widgets produces three products: widgets A, B, and C. The following information is available for each product: Product A B C Selling price per unit $10.00 $15.00 $20.00 Direct material cost per unit $2.00 $3.00 $4.00 Production time per unit on the bottleneck machine 4 hours 3 hours Question 3: Breakeven Point Analysis 2 hours The company has 1,200 hours of capacity available on the bottleneck machine each month. The company's management team wants to determine the most profitable mix of products to produce. Fixed operating costs are equal to $3,000. ACME Widgets utilizes throughput accounting principles. Maximum demand for products is: A-250 units, B-200 units, C-150 units. Question 1: Contribution Margin Analysis Question: Which product has the highest contribution margin per unit, and what is its value? a. Product A - $6.00 b. Product C-$16.00 c. Product C-$12.00 d. Product B - $10.00 Question 2: Optimal Product Mix Question: What is the optimal production mix to maximize total throughput, considering the de constraints? a. Produce 200 units of A, 150 units of B, and 150 units of C. b. Produce 250 units of A, 100 units of B, and 100 units of C. c. Produce 75 units of A, 200 units of B, and 150 units of C. d. Produce 100 units of A, 250 units of B, and 150 units of C. Question 1 ACME Widgets produces three products: widgets A, B, and C. The following information is available for each product: Product A B C Selling price per unit $10.00 $15.00 $20.00 Direct material cost per unit $2.00 $3.00 $4.00 Production time per unit on the bottleneck machine 4 hours 3 hours Question 3: Breakeven Point Analysis 2 hours The company has 1,200 hours of capacity available on the bottleneck machine each month. The company's management team wants to determine the most profitable mix of products to produce. Fixed operating costs are equal to $3,000. ACME Widgets utilizes throughput accounting principles. Maximum demand for products is: A-250 units, B-200 units, C-150 units. Question 1: Contribution Margin Analysis Question: Which product has the highest contribution margin per unit, and what is its value? a. Product A - $6.00 b. Product C-$16.00 c. Product C-$12.00 d. Product B - $10.00 Question 2: Optimal Product Mix Question: What is the optimal production mix to maximize total throughput, considering the de constraints? a. Produce 200 units of A, 150 units of B, and 150 units of C. b. Produce 250 units of A, 100 units of B, and 100 units of C. c. Produce 75 units of A, 200 units of B, and 150 units of C. d. Produce 100 units of A, 250 units of B, and 150 units of C.
Expert Answer:
Answer rating: 100% (QA)
Question 1 The contribution margin per unit for each product is calculated by subtracting the direct ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Consider the function f ( x , y ) = ( e x - 3 x ) s i n ( y ) . Suppose S is the surface z = f ( x , y ) . ( a ) Find a vector which is perpendicular to the level curve of f through the point ( 5 , 3...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Calculate the binding energy per nucleon for a 14/7N nucleus.
-
What criteria did Mobil Oil Corporation weigh most heavily in its selection of Road Warriors as a target segment? What do you think will be the biggest source of frustration for Mobil in trying to...
-
Refer to the IHS Journal of Hydraulic Engineering (September 2012) study of water pipes, Exercise 11.21. Refer, again, to the Minitab simple linear regression printout relating y = the ratio of...
-
Develop a brief answer to each of the following questions: 1. Why is it that land held for future use and equipment not currently used in the business are classified as investments rather than as...
-
Data for McCormick Designs, Inc. follow: Requirements 1. Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place. 2....
-
The City of Pfeiffer starts the year of 2 0 2 4 with the general fund and an enterprise fund. The general fund has two activities: education and parks / recreation . For convenience, assume that the...
-
Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a stay-at-home parent and Walt is a high school teacher. Skylars...
-
for, Q9-Q12,how can I solve these problems because they all havethe same type of questions, A roulette wheel has 38 numbers. Eighteen of the numbers are black, eighteen are red, and two are green....
-
Briefly describe the nature of the report auditors should issue if they conduct an audit of systems effectiveness and systems efficiency.
-
Briefly describe the four types of opinion that an external auditor might give after completing an information systems audit.
-
Some companies have carried out an environmental audit, but have not produced or implemented any action plan as a result. Is there a danger that the environmental audit is being used as a marketing...
-
Which of the gaps in Figure 3- 1 do you think represents the major problem for most firms? How can a company attempt to eliminate the knowledge gap? The communications gap?
-
It has been argued that environmental auditing is merely a passing fad, and that soon auditors will be turning their attention to some other fashionable topic. Will environmental audit exist in...
-
Assume that a company has two cost drivers-number of courses and number of students. The planned number of courses and students were 5 and 100, respectively. The actual number of courses and students...
-
Explain what is meant by vicarious liability and when it is available?
-
Explain why total compensation paid to the sales force is likely to be a mixed cost.
-
Explain the difference between variable costing and full costing.
-
Consider the information in Exercise 7-8 and identify the following statements as true or false. a. Supervisory salary is an avoidable cost if the company decides to buy the valves. b. Depreciation...
-
Use target pricing to analyze data (Learning Objective 3) Consider SnowDreams from S8-3. Assume that SnowDreams reputation has diminished and other resorts in the vicinity are charging only $65 per...
-
Determine pricing approach and target price (Learning Objective 3) SnowDreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season....
-
Decide whether to drop a department (Learning Objective 4) Knight Fashion in New York operates three departments: Mens, Womens, and Accessories. Knight Fashion allocates all fixed expenses...
Study smarter with the SolutionInn App