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Alexa Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2 0 2 4 are as follows:
Alexa Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of are as follows: Store It produces plastic storage bins for household storage needs. Click the icon to view additional information. Sales prices and variable costs are as follows: Click the icon to view the costs. Read the requirements. Requirement Which product should Store It emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Which product should Store It emphasize? Why? Store It should emphasize the production of regular bins because this product has the higher contribution margin per machine hour. Requirement To maximize profits, how many of each size bin should Store It produce? Enter a for any zero amounts. Storelt should spend machine hours making regular size bins, and machine hours making large size bins. Click the icon to view the data. Click the icon to view additional information. If Alexa Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Alexa Fashions drop any of the departments? Give your reasoning. Alexa Fashions Analysis of Dropping the Accessories Department More info Assume that the fixed costs assigned to each department include only direct fixed costs of the department: Salary of the department's manager Cost of advertising directly related to that department Data tableStore It produces plastic storage bins for household storage needs. Click the icon to view additional information. Sales prices and variable costs are as follows: Click the icon to view the costs. Read the requirements. Requirement Which product should Store It emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Data table More info The company makes two sizes of bins: large gallon and regular gallon Demand for the products is so high that Store It can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for hours per period. Store It can produce large bins every hour, whereas it can produce regular bins in the same amount of time. Fixed costs amount to $ per period.
Alexa Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of are as follows: Store It produces plastic storage bins for household storage needs.
Click the icon to view additional information.
Sales prices and variable costs are as follows:
Click the icon to view the costs.
Read the requirements.
Requirement Which product should Store It emphasize? Why?
Complete the product mix analysis to determine the contribution margin per machine hour.
Which product should Store It emphasize? Why?
Store It should emphasize the production of regular bins because this product has the higher contribution margin per machine hour.
Requirement To maximize profits, how many of each size bin should Store It produce? Enter a for any zero amounts.
Storelt should spend
machine hours making
regular size bins, and
machine hours making
large size bins.
Click the icon to view the data.
Click the icon to view additional information.
If Alexa Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Alexa Fashions drop any of the departments? Give your reasoning.
Alexa Fashions
Analysis of Dropping the Accessories Department
More info
Assume that the fixed costs assigned to each department include only direct fixed
costs of the department:
Salary of the department's manager
Cost of advertising directly related to that department
Data tableStore It produces plastic storage bins for household storage needs.
Click the icon to view additional information.
Sales prices and variable costs are as follows:
Click the icon to view the costs.
Read the requirements.
Requirement Which product should Store It emphasize? Why?
Complete the product mix analysis to determine the contribution margin per machine hour.
Data table
More info
The company makes two sizes of bins: large gallon and regular gallon
Demand for the products is so high that Store It can sell as many of each size as
it can produce. The company uses the same machinery to produce both sizes. The
machinery can only be run for hours per period. Store It can produce
large bins every hour, whereas it can produce regular bins in the same amount
of time. Fixed costs amount to $ per period.
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