Question
32. Ralston Dairy gathered this data about the two products that it produces: Product Current Sales Value Estimated Added Processing Costs Sales Value if Processed
32. Ralston Dairy gathered this data about the two products that it produces:
| Product | Current Sales Value | Estimated Added Processing Costs | Sales Value if Processed Further |
|---|---|---|---|
| Frozen yogurt | $8,000 | $2,000 | $11,000 |
| Ice cream | 12,000 | 7,000 | 18,000 |
What is the effect on profit if the ice cream is processed further? If it is negative, use a dash - not parentheses ( ).
33. Ralston Dairy gathered this data about the two products that it produces:
| Product | Current Sales Value | Estimated Added Processing Costs | Sales Value if Processed Further |
|---|---|---|---|
| Frozen yogurt | $8,000 | $2,000 | $11,000 |
| Ice cream | 12,000 | 7,000 | 18,000 |
Which of the products should be processed further?
-Frozen icecream
-frozen yoghurt
-neither
34. Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32.
What the contribution margin per the constrained resource for khaki shorts? Round to the nearest penny, two decimal places.
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Intermediate Accounting Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian Edition
1119497043, 978-1119497042
