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D 000 Sign IDE Relevant Costing (Constrained Resources) Fancy Floats sells giant animal shaped pool floats. The company is having trouble acquiring vinyl to
D 000 Sign IDE Relevant Costing (Constrained Resources) Fancy Floats sells giant animal shaped pool floats. The company is having trouble acquiring vinyl to make the pool floats. They currently are limited to 10,800 feet of vinyl per quarter. The firm has the following information on its top selling floats: Selling Price/Unit Variable Cost/Unit Vinyl Required/Unit Unicorn $50 $30 15 feet Flamingo $65 $42 18 feet Shark $40 $26 9 feet In addition to the limitation on the supply of vinyl, historical data shows the demand for each float type does not exceed 300 units per quarter. The firm's fixed costs total $12,500. 27. Calculate the contribution margin per foot of vinyl of the UNICORN. A. $20.00/ft B. $18.00/ft C. $1.33/ft D. $0.75/ft 28. Calculate the contribution margin per foot of vinyl of the FLAMINGO. A. $1.28/ft B. $23.00/ft C. $0.78/ft D. $18.00/ft 29. Calculate the contribution margin per foot of vinyl of the SHARK. A. $9.00/ft B. $14.00/ft 1200 #00000 ABCD ABCDE 0000 ABCD ABC 006 AB 00 A MO 100 R N C. $1.56/ft D. $0.64/ft 30. Given the firm's operating constraints how many units of Shark should the firm produce? A. 10,000 units B. 300 units C. 1,111 units D. 2,700 units 31. Given the firm's operating constraints how many units of Unicorn should the firm produce? A. 300 units B. 667 units C. 4,500 units D. 10,000 units 32. Given the firm's operating constraints how many units of Flamingo should the firm produce? A. 556 units B. 10,000 units C. 300 units D. 200 units 33. If the firm produces the optimal number of each type of units, what will its operating income be? A. $5,500 B. $2,300 C. $3,400 D. $8,800
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