Answered step by step
Verified Expert Solution
Question
1 Approved Answer
HH Corp manufactures and sells brushes and combs. The company can sell all of either product it can make. The following data are pertinent to
HH Corp manufactures and sells brushes and combs. The company can sell all of either product it can make. The following data are pertinent to each respective product: Units of output per machine hour Unit selling price Unit product cost: Direct material Direct labour Brushes 8 $12.00 $1.00 $2.00 $0.50 Combs 20 $4.00 $1.20 $0.10 $0.03 Variable overhead Total fixed overhead is $380,000 The company has 40,000 machine hours available for production. Required: (1) Prepare a production plan. (2) Calculate Net Income for each sales mix provided below: a. 320,000 brushes and 0 combs b. 0 brushes and 800,000 combs c. 160,000 brushes and 600,000 combs d. 252,630 brushes and 252,630 combs (3) State what sales mix maximizes net income without violating the machine hours constraint.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started