Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gunst Company produces three video games. Android, Bio-Mutant, and Cyclops. Cost and revenue data pertaining to each product are as follows Android sutant $77 24

image text in transcribed
image text in transcribed
Gunst Company produces three video games. Android, Bio-Mutant, and Cyclops. Cost and revenue data pertaining to each product are as follows Android sutant $77 24 selling price Direct labor Direct materials Variable overhead $125 60 16 48 At the present time, demand for each of the company's products far exceeds its capacity to produce them. Thus, management is trying to determine which of its games to concentrate on next week in filling its backlog of orders. Gunst's direct labor rate is $12 per hour and only 1,000 hours of direct labor are avallable each week Determine the maximum total contribution margin the company can make by its best use of the 1,000 avallable hours. (Do not round Intermedlate colculations. BloMorphs Corporation produces three products in a monthly joint production process. During the first stage of the process liquids and chemicals costing $63,300 are heated and three different compounds emerge: 3,000 gallons of Molecue worth $22 per gallon are created from the steam 10,000 gallons of Borphue worth $15 are dralned from the tank, and 1,000 gallons of the tank residue, labeled as Polygard, are sold as fertilizer for $6.00 per gallon. Before Molecue is sold, It must be purified In another process that costs $10,900, and before the Polygard fertilizer is sold, It must be bottled at a price of $1.50 per gallon a. What is the profitablity of the joint process? b. Is It profitable to process Molecue further if it can be sold at split-off for $6 per gallon? c. BioMorphs has an offer to buy Polygard bulk at the split-off point without bottling for $3,000 per month. What is the Incremental profit (loss) to BioMorphs if It accepts the offer? Complete this question by entering your answers in the tabs below Required A Required 8 Required c BioMorphs has an offer to buy Polygard bulk at the split-off point without bottling for $3,000 per month. What is the incremental profit (loss) to BioMorphs if it accepts the offer? Required B

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Software Quality Assurance A Guide For Developers And Auditors

Authors: Howard T. Garst Smith

1st Edition

1574910493, 978-1574910490

More Books

Students also viewed these Accounting questions

Question

Who should be involved?

Answered: 1 week ago