Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL. Contribution margin per unit is determined as follows: MICHAEL GABRIEL Revenue P 130 P 80 Variable costs

image text in transcribed

FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL. Contribution margin per unit is determined as follows: MICHAEL GABRIEL Revenue P 130 P 80 Variable costs (70)(38) Contribution margin 60 42 Total demand for MICHAEL is 8,000 units; and for GABRIEL, 16,000 units. Machine hours is a scarce resource. Only 42,000 machine hours are available during the year. MICHAEL requires 6 machine hours per unit while GABRIEL requires 3 machine hours per unit. How many units of MICHAEL should FAUSTINO Inc. produce

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions