1.

Dawn Co. produces two product lines: Gizmos & Gadgets.

If machine hours is a constrained resource, given the following data:

Gizmo contribution margin per unit $34

Gadget contribution margin per unit $40

Gizmo requires 1 machine hours per unit

Gadget requires 5 machine hour per unit

Assuming Dawn company just enough machine hours to meet demand for its most profitable line, how much would they be willing to pay per hour to obtain more machine hours? Round only your final answer to 2 decimal places

2.

Fred's Pizza is considering closing store no. 16 due to their recent financial performance: Sales $205,000

Cost of sales $67,900 Furnishings & equipment $20,000

Building occupancy costs: Transportation cost $2,800

Rent Expense 36,500 Parking revenue $2,000

Utilities Expense 15,000

Supplies Expense 5,600

Hourly wages 57,700

Managers salary $27,000

Allocated corporate overhead 16,800 All employees except the store manager would be let go. The manager would be transferred to another store. All furnishings & equipment are fully depreciated & would be transported to a warehouse at a cost of $2,800. The parking lot generates $2,000 event parking revenue during game season.

Note (R) relevant or (N) not relevant.

- A. B.	Sales
- A. B.	Cost of Sales
- A. B.	Rent Expense
- A. B.	Utilities Expense
- A. B.	Supplies Expense
- A. B.	Manager's Salary
- A. B.	Hourly wages
- A. B.	Allocated corporate overhead
- A. B.	Furnishings & equipment
- A. B.	Transportation cost
- A. B.	Parking revenue