Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3 i Snowshoes R Us makes snowshoes. It currently produces 2,100 pairs of snowshoes per year. 2. Its cost of making the bindings that are

image text in transcribed
image text in transcribed
image text in transcribed
3 i Snowshoes R Us makes snowshoes. It currently produces 2,100 pairs of snowshoes per year. 2. Its cost of making the bindings that are part of the snowshoes are as follows: 4 Direct materials 17,530 5 Direct labor 2,900 6 Variable overhead 2,110 7 Fixed overhead 6,800 8 9 Total cost for 2,100 bindings 29,340 10 S 12.00 each 11 Showshoes has an offer from Better Bindings to sell bindings to Shoeshoes for 12 Snowshoes would pay $ 1.00 13 per unit to transport the bindings to its manufacturing plant, where it would add its own 24 logo at a cost of 0.40 per logo 15 40 Requirement 4: 41 Remembering that showshoes can sell all the showshoes it produces, it desires to make 42 maximum use of its production facilities. 43 44 Snowshoes also makes a boogle board. 45 The boogie boards have a maximum demand of 10,000 units. 45 One machine makes both the boogie boards and showshoes. 47 The machine has a maximum capacity of 30,000 48 machine hours per year. 49 The contribution margin of the boogie board is 6.25 50 per unit. The snowshoe takes 2 hours of machine 51 time to produce; the boogie board takes 1 hours to produce 52 Assume that showshoes has been charging a price of $ 60.00 53 per pair of showshoes 54 55 How many of each product should be produced with the capacity 56 of the machine? 57 A B D F 1 Snowshoe Boogie Nm 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Equals #of products produced NN 21 N 22

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

Alaskas Permanent Fund Dividend Examining Its Suitability As A Model

Authors: K. Widerquist, M. Howard

2nd Edition

0230112072, 9780230112070

More Books

Students also viewed these Accounting questions