Dallas Company manufactures two products called X and Y that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its unit costs for each product at this level of activity are given below:

Direct materials

$ 15

Direct labour

26

13

22

Variable manufacturing overhead

11

Traceable fixed manufacturing overhead

22

24

Variable selling expenses

18

14

Common fixed expenses

21

16

Traceable fixed

22

24

manufacturing overhead

Variable selling

18

14

expenses

Common fixed

21

16

expenses

$

130

$102

Cost per unit

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.

ANSWER THE FOLLOWING QUESTIONS -

What is the total amount of traceable fixed manufacturing overhead for the X product line?

Answer:

Assume that Dallas customers would buy a maximum of 86,000 units of X and 66,000 units of Y. Also assume that the company's raw for production is limited to 210,000 pounds. What is the maximum contribution margin Dallas Company can earn given the limited quan materials?

Answer:

Assume that Dallas normally produces and sells 66,000 Y and 86,000 X per year. If Dallas discontinues the Y product line, its sales representatives sales of X by 12,000 units. If Dallas discontinues the Y product line, how much would profits increase or decrease?

Answer:

Assume that Dallas expects to produce and sell 86,000 X during the current year. One of Dallas sales representatives has found a new customer that is buy 16,000 additional X for a price of $104 per unit. If Dallas accepts the customer's offer, how much will its profits increase or decrease?

Answer:

How many pounds of raw material are needed to make one unit of X?

Answer:

Assume that Dallas expects to produce and sell 56,000 X during the current year. A supplier has offered to manufacture and deliver 56,000 X to of $104 per unit. If Dallas buys 56,000 units from the supplier instead of making those units, how much will profits increase or decrease?

Answer:

What is the company's total amount of common fixed expenses?

Answer:

Assume that Dallas expects to produce and sell 96,000 Y during the current year. One of Dallas sales representatives. has found a new customer that is willing to buy 2,000 additional Y for a price of $45 per unit. If Dallas accepts the customer's offer, how much will its profits increase or decrease?

Answer: