ArchoChem Ltd manufactures two chemicals, West 1 and West 2. Contribution margin data follow: ArchoChem production process
Question:
ArchoChem Ltd manufactures two chemicals, West 1 and West 2. Contribution margin data follow:
ArchoChem production process uses highly skilled labour, which is in short supply. The same employees work on both products and earn the same wage rate of $21 per hour.
Required
Which of ArchoChem's products is the more profitable? Explain.
Transcribed Image Text:
West 1 West 2 Unit sales price $13.00 $31.00 Less: Direct material 7.00 5.00 Direct labour 1.00 6.00 Variable overhead 1.25 7.50 0.75 Variable selling and administrative costs 0.50 Unit contribution margin $3.00 $12.00
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
The most profitable product is the one that yields the highest cont...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
Question Posted:
Students also viewed these Advanced Accounting questions
-
Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Duo Companys production process uses highly skilled labor, which is in short supply. The same employees work on...
-
Plato Corporation manufactures two products, Alpha and Beta. Contribution margin data follow. Plato Corporations production process uses highly skilled labor, which is in short supply. The same...
-
McCartney Company manufactures guitars. The company uses a standard, job- order cost accounting system in two production departments. In the Construction Department the wooden guitars are built by...
-
The following information is available for Dylan Inc., a company whose shares are traded on the Toronto Stock Exchange: Other information: 1. For all of the fiscal year 2020, $100,000 of 6%...
-
A gas-phase decomposition reaction with stoichiometry 2A ? 2B + C follows a second-order rate law (see Problem 11.14): rd [mo1/(m3?s)] = kC2A where CA is the reactant concentration in moUrn3. The...
-
A chart of accounts varies with each type of business as well as each company. In a group, compare and contrast the accounts that would appear in Coles Real Estate Office, Sarahs Clothing Emporium,...
-
1. Classify the following as either a revenue or a capital expenditure: a. Completed an addition to an office building for $250,000 cash. b. Paid $160 for the monthly cost of replacement filters on...
-
Stephanie owns a small warehouse that is insured for $200,000 under a commercial property insurance policy. The policy contains an 80 percent coinsurance clause. The warehouse sustained a $50,000...
-
Dave borrowed $600 on January 1, 2006, and paid it all back at once on December 31, 2006. The bank charged him a $5.00 service charge and interest was $44.20. What was the APR? (Do not round...
-
The Donna Mosier Clothing Group owns factories in three towns (W, Y, and Z), which distribute to three retail dress shops in three other cities (A, B, and C). The following table summarizes factory...
-
Tan Choo Company produces a single product in its Singapore plant, which currently sells for $15 per unit. Fixed costs are expected to amount to $180 000 for the year, and all variable manufacturing...
-
When setting prices, it is important to define the product and market correctly. Do you agree with this statement? Provide an example to illustrate your answer.
-
Find each integral in Problem TV6 - x xp: V6- x
-
Between financial accounting and management accounting, none is more important than the other. Discuss using examples to substantiate the position taken. Also discuss arguments for and against.
-
The following is the data extracted from the records of an industrial company during the month of January 2 0 2 1 : 1 7 0 , 0 0 0 riyals raw materials purchases Direct wage costs 6 5 , 0 0 0 riyals....
-
What is the role of multi-scale process modeling in bridging the gap between different levels of process analysis, and how does it contribute to a more comprehensive understanding of complex systems ?
-
Sally received a gifted painting from her grandfather with FMV of $10,000 at the date of the gift and adjusted basis of $30,000. Sally sold the painting for $5,000 cash after a year. How much is...
-
Is the traditional objective of the corporation still appropriate in the current climate? Discuss.
-
A resistor of resistance 6.0 and a second resistor of resistance 3.0 are connected in parallel across a battery of e.m.f. 4.5 V and internal resistance 0.50 . What is the current in the battery? A....
-
A superior criticized a sales manager for selling high-revenue, low-profit items instead of lower-revenue but higher-profit items. The sales manager responded, My income is based on commissions that...
-
Managers should base pricing decisions on both cost and market factors. In addition, they must also consider ethical and legal issues. Describe the influence that ethics and the law have on pricing...
-
The Kerwin Company had the following data (in thousands) for a given period: Sales ............. $780 Direct materials ......... 180 Direct labor ............ 230 Indirect manufacturing costs .......
-
I had a chance to rent my summer home for 2 weeks for $800. But I chose to have it idle. I didnt want strangers living in my summer house. What term in this chapter describes the $800? Why?
-
Your answer is partially correct. Prepare the adjusting entry at December 31, 2020, to record subscription revenue earned in December 2020. (Credit account titles are automatically indented when the...
-
11. A user forgets to type one of the zeros in one of the steps during creating general ledger reconciliation accounts for accounts receivable, sale revenue, and sales discounts. Then receives error...
-
Required information Skip to question [The following information applies to the questions displayed below.] Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic,...
Study smarter with the SolutionInn App