10 Chapter 10 Homework 4 Varto Company has 9.600 units of its sole product in inventory that it produced last year at a cost of $28 each. This year's modelis superior to last year's, and the 9,600 units cannot be sold at last year's regular seling price of $38 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $11 each or 2) they can be processed further at a cost of $188,800 and then sold for $30 each. Should Varto sell the products as is or process further and then sell them? 133 Bo INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue if processed further Revenue if sold as is Incremental revenue 0 Less: Incremental cost of processing Incremental net incomodoss) 5 0 Hint Sell as is Print The company should References U7 133 po Colt Company owns a machine that can produce two specialized products Production time for Product TLX is two units per hour and for Product MTV is five units per hour. The machine's capacity is 2.500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 4 250 units of Product TLX and 2,325 units of Product MTV Selling prices and variable costs per unit to produce the products follow 5 per unit Product TX Product MTV Selling price per unit 56.30 Variable costs per unit 3.45 Determine the company's most profitable sales mix and the contribution margin that results from that sales mix (Round per unit contribution margins to 2 decimal places.) H Product TLX Pruda MTV Contribution margin per unit Betrics Contribution margin por production hour Total Product LX 4250 Product MTV 2.325 Maximum number of units to be sold Hours required to produce maximum units Product TX Product MTV Total For Most Profitable Sales Mix Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 6 133 points Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material Kuses 37 pounds of the material, S5 uses 37 pounds of the material, and G9 uses 57 pounds of the material Demand for all products is strong, but only 51,600 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follow 1 SS 091 Selling price $164.68 $108.71 5214.99 Variable costs 104.00 78.00 154.00 Book Calculate the contribution margin per pound for each of the three products. Orders for which product should be produced and filled first, then second, and then third? (Round your answers to 2 decimal places.) Hint Contribution margin per pound Product K1 Product S5 Product Go Print Contribution margin per pound References Order in which products should be produced and filled