Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

22. Use this mformation to answer question 22 to question 26 Fanyafujo Ltd manufactures and sells two models, Model A which is high quality and

image text in transcribed

image text in transcribed

22. Use this mformation to answer question 22 to question 26 Fanyafujo Ltd manufactures and sells two models, Model A which is high quality and model B for middle market. ITEM COST PER UNIT Model A Model B Shs. Shs. 120 160 Direct materials Direct labour (Shs. 20 per hour) Variable support (Shs 5 per machine hour) Fixed support Price per unit Demand for products 20 20 260 8,000 40 20 400 5,000 Monthly capacity is limited to 60,000 machine hours Calculate the cost per unit of model B A Shs. 260 B. Shs. 280 C. Shs. 240 D. Shs. 300 Calculate the contribution per unit from product A: A Shs. 90 B. Shs. 190 C. Shs. 70 D. Shs. 50 3. Determine the product mix that maximizes profits for this firm: A 8000 units of A and 5000 units of B B. 5000 units of A and 8000 of units of B C. 8000 units of A and 35000 B D. 4375 units of A and 5000 units of B 5. Calculate the contribution margin per machine hour for product A: A Shs. 17.50 B. Shs. 70.00 C. Shs. 4.00 D. Shs. 50 5. Suppose this company receive a special order for 2000 units for product A at Shs. 3000 each. What is the opportunity cost per unit associated with this order

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Measurement And Internal Audit Operations

Authors: Andrew Fight

1st Edition

184112401X, 978-1841124018

More Books

Students also viewed these Accounting questions