Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, S78, and 532, respectively. The variable costs for cach product

Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, S78, and 532, respectively. The variable costs for cach product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales 7 hours; and Wales I hour. Assume that Widgeon Co. produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time. Product demand does not warrant any more production of that product. The maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour is $7,000 $28,000 $4,000 $35,000

Step by Step Solution

3.31 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

Solution Answer Particluars Bales Tales Wales Selling Price 55 78 32 Less Variable Cost 20 50 15 Co... 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

Document Format ( 2 attachments)

PDF file Icon
635d72406e660_175689.pdf

180 KBs PDF File

Word file Icon
635d72406e660_175689.docx

120 KBs Word File

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

Managerial Accounting

Authors: Ronald W Hilton

7th Edition

0073022853, 978-0073022857

More Books

Students also viewed these Accounting questions

Question

Discuss the implications of Husserls phenomenology for psychology.

Answered: 1 week ago