Font YU Small(IN Paradeh Syos Unit 8 LEARNING ACTIVITY Question 1 (Total: 27 marka; -3 marks per error) 1. Relevant cost per unit: Direct Materials Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead ($13.40 - $5.10) Relevant Manufacturing Cost (9 marks $24.70 $16.30 $2.30 $8.30 551.60 2. Net advantage (disadvantage): Manufacturing Cost Savings ($51.60 x 20,000) Additional contribution Margin Cost of Purchasing the Port ($51.81 x 20,000) Wet Advantage (Disadvantage) (9 marks) $1,032,000 $44,000 ($1,036,000) $40,000 5 . 22 159-9- Paragraph AaBb CcDdl AaBbcad AaBbCcl AaBbcod AaBbce 1 Normal 1 YU Body YU H-2 YU H-5 YU Small 5 Styles (9 marks) 3. Maximum acceptable purchase price: Manufacturing Cost Savings Additional Contribution Margin Total Benefit Wumber of Units Benefit per Unit Paragraph Styles Question 2 (Total: 26 marks; -3 per error) 1. Demand on the mixing machine: (6 marks) Mixing minutes per unit Monthly demand in units Total minutes required Products 2.70 1,000 2,700 B 3.30 3,000 19,900 c 4.70 3,000 14,100 Total time required for all products: 26,700 minutes 2. Optimal production plan: (15 marks) Selling price per unit Direct materials Direct labour Variable manufacturing overhead Variable selling cost per unit Total variable cost per unit Contribution margin per unit Mixing minutes per unit Contribution margin per minute Rank in term of profitability Optimal production Products A $67.90 $12.10 14.10 2.60 12.50 $31.30 $36.60 12.76 $13.56 B $57.70 $10.30 8.00 2.20 2.20 $22.70 $35.00 3.30 $10.61 2 3,000 C $43.90 $8.50 6.80 1.80 2.50 $19.70 $24.20 4.70 $5.15 3 2,809 1.000 E. 1 Normal 1 YU Body YU H-2 YU H-5 YU Small (1 No Spa Paragraph Styles 3. (5 marks) The company should be willing to pay up to the contribution margin per minute for the ?????? Question 4 (Total: 26 marks) 1. (9 marks; -3 marks per error) Sales value after further processing Costs of further processing Benefit of further processing Less: Sales value at split-off point Net advantage disadvantage) 2. (9 marks; -3 marks per error) Gooey Mogey Wowie Cowie $40,800 $54,200 11,600 25,300 29,200 28,900 32,000 28,000 $ 2,800) $ 900