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Do not use dollar signs in your answers. It your answer is a negative number, put a minus sign in front. Your Company makes two
Do not use dollar signs in your answers. It your answer is a negative number, put a minus sign in front. Your Company makes two products that use the same machine. A total of 6,000 machine hours are available on the machine. What is the maximum contributing margin that the company can generate, given the limitation on machine hours? Remember: You cannot produce more units than the MH will allow. Products A B Demand in units 6,000 3,500 Selling price $65.80 $54.60 Variable costs $25.80 $40.00 MH hours 2 1 Do not use dollar signs in your answers. It your answer is a negative number, put a minus sign in front. Your Company is either going to sell a machine for $2,000 or have it restored and sell it for $16,000. The restoration will cost $10,000. If the machine is restored before selling, how much more will the company make? Hint: first decide which of the five problems this best fits into. Do not use dollar signs in your answers. It your answer is a negative number, put a minus sign in front. Your Company has capacity to produce 100,000 units and it currently producing 80,000. It received a request for a special order for 5,000 units of its product for a selling price of $20.00 each. The per unit cost is $22.40, determined as follows: Per Unit Direct materials $2.50 Direct labor $1.90 Variable MOH $2.30 Fixed MOH $7.30 Variable Selling costs $6.60 Fixed selling costs $1.80 Total per unit cost $22.40 Only $5 of the variable selling costs would have to be paid if the special order is accepted. This special order would have no effect on the company's other sales. If the special order is accepted, what is the change to the company's overall net operating income? Do not use dollar signs in your answers. It your answer is a negative number, put a minus sign in front. Your Company makes two products that use the same mixing machine. A total of 4,200 minutes are available on the machine. Use the following information to determine the maximum contributing margin that the company can generate. Products A B Demand in units 2,000 3,500 Selling price $55.80 $54.60 Variable costs $25.80 $29.60 Mixing minutes per unit 2 1
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