Question
1. Helgi Corp. manufactures and sells furniture. Below is the information for its products: Bookcases Chairs Side Tables Contribution margin per unit $ 69.00 $
1. Helgi Corp. manufactures and sells furniture. Below is the information for its products:
| Bookcases | Chairs | Side Tables | |||||||||
| Contribution margin per unit | $ | 69.00 | $ | 54.00 | $ | 25.50 | |||||
| Machine hours per unit | 3 | 2 | 1 | ||||||||
The market demand is limited to 2,180 units of each of the three products.
The company has 5,580 machine hours available each month.
What is the maximum possible contribution margin that the compamy could make in any month?
Multiple Choice
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$183,330.
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$148,830.
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$145,330.
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$153,330.
2. The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows:
| Blink Division | Blur Division | Total | |||||||||
| Sales | $ | 360,000 | $ | 194,000 | $ | 554,000 | |||||
| Variable costs | 114,000 | 93,000 | 207,000 | ||||||||
| Contribution margin | $ | 246,000 | $ | 101,000 | $ | 347,000 | |||||
| Direct fixed costs | 100,000 | 86,000 | 186,000 | ||||||||
| Segment margin | $ | 146,000 | $ | 15,000 | $ | 161,000 | |||||
| Allocated common costs | 55,000 | 47,500 | 102,500 | ||||||||
| Operating income (loss) | $ | 91,000 | $ | (32,500 | ) | $ | 58,500 | ||||
Operating income for Winston Corporation, as a whole, if the Blur Division were dropped would be:
Multiple Choice
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$123,500.
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$91,000.
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$43,500.
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$58,500.
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Human Resource Management
Authors: Robert L. Mathis, John H. Jackson
13th Edition
053845315X, 978-0538453158
