Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cullumber Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Cullumber Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10,500 machine hours, and no other products that the company makes use these machines. Sarah Jacob, the company's operations manager, is preparing the production schedule for the coming month and can't seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget. Michael Stoner, the company's controller, has gathered the following information about the two products: Dumbbell Rack Weight Bench Selling price per unit $40 $59 Direct materials 18 15 Direct labor 4 8 Variable overhead 3 6 Fixed overhead 5 10 Profit per unit $10 $20 Unit sales demand 5,000 8,000 Machine hours per unit 0.75 1.5 Your answer is correct. Calculate the total number of machine hours needed to produce enough units to meet the sales demand for the two products. 15750 Total number of machine hours How should Sarah allocate the 10,500 available machine hours between the two products so that Cullumber maximizes its profits? Machine Hours Dumbbell Rack 3750 6750 Weight Bench What total contribution margin will Cullumber realize based on your answer to part (b)? $ Total contribution margin

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_2

Step: 3

blur-text-image_3

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

Financial Accounting And Reporting

Authors: John McKeith, Bill Collins

2nd Edition

0077138368, 978-0077138363

More Books

Students also viewed these Accounting questions