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3 3.33 pts Question 9 Cardinal Company manufactures two types of lawn mowers, Push and Power. Push mowers have a contribution margin of $10 per
3 3.33 pts Question 9 Cardinal Company manufactures two types of lawn mowers, Push and Power. Push mowers have a contribution margin of $10 per unit and Power mowers have a contribution margin of $22 per unit. Cardinal's fixed costs are $580,000. Cardinal has only 20.000 machine hours available to manufacture the two types of mowers. It takes 2.5 machine hours to produce one Push mower and 5 machine hours to produce one Power mower. Demand for Push mowers is 4.000 units and demand for Power mowers is 3,000 units. How many units of each type of mower should Cardinal produce? Power 2,000. Push 4,000 Power 2,000, Push 2,500 Power 4,000. Push O Power 3,000. Push 2,000 Question 10 3.33 pts Sundown Sunglass Company currently manufactures the frames used in its sunglasses. Here are Sundown's most recent data regarding this key component part: Number of frames produced annually Fixed production costs Variable production costs 10,000 $300,000 $165.000 In lieu of manufacturing the frames in-house. Sundown can purchase the frames from an outside supplier. If Sundown purchases the frames from the outside supplier, it would avoid 35% of the fixed production costs. At what per-unit purchase price is Sundown neither better off nor worse off if it buys the frames from an outside supplier rather than makes the frames in-house? $10.50 $16.50 $27.00 $36.50 3.33 pts Question 11 Cypress Inc, manufactures wooden canoes. Cypress normally sells the canoes for $2,700 per unit. A major distributor has offered to buy 1,000 units at a reduced price. At its budgeted annual production level of 18,000 units, Cypress' per-unit manufacturing costs are as follows: Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead $950 $200 $330 $450 Cypress would have to produce the special order on an overtime shift, which would increase the direct labor costs to $300 per unit. The special order would not impact Cypress" fixed costs. However, if Cypress accepts the special order, it will also incr $60,000 in additional, one-time costs in connection with the order. What is the minimum per-unit selling price that Cypress must charge to break even on the special order? $1,480 O $1.580 $1,640 $2.090 Question 12 3.33 pts Bobcat Industries has two divisions, Division A and Division B. Division A has sales of $200,000, variable costs of $40,000, and traceable fixed costs of $20,000. The company as a whole has total sales of $800,000 and common fixed costs of $50,000. What is Division A's break-even point in sales revenues? $87.500 O $40,625 O $140.000
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