Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AA maximum Ltd. manufactures bicycles. Two types of bicycles produced are BWB100 and CSX300. The following data relates to the products. BWB100 CSX300 Selling price

AA maximum Ltd. manufactures bicycles. Two types of bicycles produced are BWB100 and CSX300. The following data relates to the products.

BWB100

CSX300

Selling price per unit

$560

$850

Direct material

$120

$160

Direct labour

$225

$450

Variable overhead

$12

$15

Variable selling costs

$5

$8

Total variable cost/unit

$362

$633

Highly skilled staff are required to manufacture the bicycles and this is in short supply, thus considered to be a scarce resource. It takes 3 labour hours to produce one BWB100 and 6 labour hours to produce one CSX300.

What is the total contribution margin at the optimal level?

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

Students also viewed these Accounting questions

Question

Distinguish between poor and good positive and neutral messages.

Answered: 1 week ago

Question

Describe the four specific guidelines for using the direct plan.

Answered: 1 week ago