It should be clear now.
Problem 4-71 (Algo) Optimum Product Mix (LO 4-4) Austin Enterprises makes and sells three types of dress shirts Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow Basic 5 31 22,00 Classic 60 1.000 Forma $ 170 33.000 Sales price Maximus annual demand units) Input requirement per unit Oirect materia Direct Labor 0.8 yards 0.6 hours 0.2 yards 2 hours 0.0 yards 7 hours $ 5 5 Costs Variable costs Materials Direct labor Factory overhead Marketing Annual fixed costs Manufacturing Marketing Administration 27 per yard 13 per hour 5 per direct labor-hour 30 of sales price $39.000 59,500 $33.00 The company faces two mits: (1) the volume of each type of shirt that it can sell (see maximum annual demand) and (2) 35.000 direct labor hours per year caused by the plant layout Required: 9-1. Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below --2. How much operating profit could the company earn if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each shirt per the constrained resource, direct labor 1-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem so far, what product mix do you recommend? d-1. Calculate the contribution margin for each type of dress shirt using the table below. d-2 How much operating profit should your recommended product mix generate? e. Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 11,500 more hours. The direct labor cost would increase from $13 to $17 per hour for all hours of direct labor used during the additional shift. What additional product/s) should Austin manufacture and what additional profit would be expected with the use of the added shit? Complete this question by entering your answers in the tabs below. Red B1 Reg A1 Reg A2 Reg 82 Reg Reg 02 Reg D1 RE Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below Basic Classic Formal Total revenue Total vanable costs Contribution margin 5 5 0 0 Req A2 > Complete this question by entering your answers in the tabs below. Reg Al Reg A2 Raq B1 Reg 2 Reac RegE Reg D1 Reg 02 How much operating profit could the company carn if it were able to satisfy the annual demand? Operating pro Reg A2 Reg B1 Reg A1 Red B2 Regc Reg 1 Reg D2 Reg E Compute the contribution margin for each shirt per the constrained resource, direct labor. (Do not round intermediate calculations. Round your final answers to decimal places.) Baste Classic Formal Contribution margin Complete this question by entering your answers in the tabs below. Reg Al Reg A2 Reg B1 Remek Regc Reg 01 Reg D2 Red E of the constrained resource, direct labor? Which of the three product lines makes the most proff Reg B2 Classic Sasia Formal Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg Bi Reg az Reqc Reg D1 Reg D2 Reg E Given the information in the problem so far, what product me do you recommend? cast and Basic Basic and Format Classic and Formal Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Red B1 Reg 2 Reqc Reg D1 Reg D2 ReqE Calculate the contribution margin for each type of dress shirt using the table belle Basic Classic Total revenue Less variable manufacturing costs 0 Total costs Contribution margin 05 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg 1 Reg B2 Reqc Reg 01 Reg D2 RegE How much operating profit should your recommended product mix generato? Operating profit table below Required: 6-1. Assuming the company can sausty the annual demand, calculate the contribution margin for each type of dress shirt using the --2. How much operating profit could the company earn if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each shirt per the constrained resource, direct labor 1-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem so far, what product mix do you recommend? 0-1 Calculate the contribution margin for each type of dress shirt using the table below d-2. How much operating profit should your recommended product mix generate? e. Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 11.500 more hours. The direct labor cost would increase from $13 to $17 per hour for all hours of direct labor used during the additional shift What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? Complete this question by entering your answers in the tabs below. Raq Al Reg A2 Red B1 Reg 2 Regc Reg 01 Reg D2 Reg Suppose that the company could expand its labor.capacity by running an extra shift that could provide up to 11.500 more hours. The direct labor cost would increase from 513 to $17 per hour for all hours of direct labor used during the additional shift. What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? (Round your final antwer to 2 decimal places.) ho Show less Austin should manufacture Additional profit would be Problem 4-53 (Algo) Special Order (LO 4-1, 2) Unter Components manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these systems to various car services that can customize them for their locale and business model. It manufactures two systems, the Startoo and the Star150, which differ in terms of capabilities. The following information is available Costerunit Direct saterials Direct labor Variable overhead Taxed overhead Total cost per unit Price Units sold Star 3 72 40 20 97 $ 229 Stars 5 32 50 25 5 24 300 4.000 $ 2,000 The average wage rate is $25 per hour Vortable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20.000 direct labor-hours, but current production uses only 10,400 direct labor-hours. Required: 6. A nationwide car sharing service has offered to buy 2600 Start00 systems and 2.600 Star150 systems if the price is lowered to $210 and $260, respectively, per unit 8-1. If Unter accepts the offer, how many direct labor-hours will be required to produce the additional systems? --2 Complete the following table to determine the differential profit increase (or decrease if Unter accepts this proposal. Prices on regular sales will remain the same. 1-1. Suppose that the car-sharing has offered instead to buy 3,600 each of the two models at $210 and $260. respectively. This customer will purchase the 3,600 units of each model only in an all-or-nothing deal. That is. Unter must provide all 3.600 units of each model or none Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints, Unter will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added. 5-2 How much will the profits change if the order is accepted? Assume that the company cannot increase its production capachy to meet the extra demand c.1. Assume that in the situation presented in requirement b-t, the plant can work overtime. Direct labor costs for the overtime production Increased to $3750 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal production Complete the table below to determine the total contribution margin c-2. How much will the profits change in this situation? Re A1 Reg A2 Rag Reg 2 Real Reg 2 A nationwide carsharing service offered to buy 2.690 starten and 2.500 Star 50 system the prea lowered to $200 and $250, per un AL FUntersccept the offer how many direct bochornea to produce the edim? Dirbo hour Reg A1 Reg A2 Red B1 Reg B2 Reg 01 Reg C2 A nationwide car-sharing service has offered to buy 2,600 Star 100 systems and 2,600 Star 150 systems if the price is lowered to $210 and $260, respectively, per unit A1. If Unter accepts the offer, how many direct labor-hours will be required to produce the additional systems? Direct labor.hots Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B1 Red B2 Reg C1 Reg C2 A nationwide car sharing service has offered to buy 2,600 Star 100 systems and 2,600 Star 150 systems if the price is lowered to $210 and $260, respectively, per unit A2. Complete the following table to determine the differential profit increase (or decrease) ir Unter accepts this proposal. Prices on regular sales will remain the same Show less Differential revenues Star 100 Star 150 Differential costs Star 100 Star 150 Differential profit (los) 0 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Ren: Reg B2 Reg C1 Req c2 Suppose that the car sharing service has offered instead to buy 3,600 each of the two models at $210 and $260, respectively, This customer will purchase the 3,600 units of each model only in an all-on-nothing deal. That is, Unter must provide all 3,600 units of each model or none. Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints, Unter will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added Show less Star100 Star150 Total 0$ 05 0 Special Order Contribution margin per unit Number of units Total contribution margin Regular production Contribution margin per unit Number of units Total contribution margin Total contribution margin for both S 0$ 0 0 0 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg 81 Reg 02 Reg C1 Reg C2 How much will the profits change in the order is accepted? Assume that the company cannot increase its production capacity to meet the extra demand Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Reg BZ Reg C1 Reg C2 Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increased to $37.50 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal production. Complete the table below to determine the total contribution margin Star 100 Star150 Total S 0$ 0 Special Order Contribution margin per unit Number of units Total contribution margin Regular production Contribution margin per unit Number of units Total contribution margin Total contribution margin for both Additional direct labor costs Additional variable overhead Total contribution margin for both with additional costs) OS 0S 0 S 0 Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Req B1 Reg B2 Reg C1 Reg C2 How much will the profits change in this situation? Problem 4.71 (Algo) Optimum Product Mix (LO 4-4) Austin Enerprises makers and three types of dress shirts Management is trying to determine the most profitable mix Soles prices demand, and one of manufacturing inputs follow 1 31 33,000 0. 5 60 13.00 Focal $ Ere 3,000 Sales prie (units) Input per unit Directorial Director - 0.6 hours yerds 7 hours 5 $ Cast Vwhile costs terials Director Factory al costs ufacturing Marketing dintreti 17 yerd 13 per hour trect Laber- 1 sale price 529.000 59.00 $33,000 The company faces two to the volume of each type of what that can sel see maximum annual demand) and (235,000 direct tabor hours per year used by the plant layout Required -- Asuming the company can say the manual demand, collete the contribution margin for each type of dress shirt using the table below - 2. How much operating profit could the company of it were able to satisfy the annual demand? b-1. Compute the contribution margin for each shirt per the contened resource, direct labot 1-2. Which of the the product lines makes the most profitable use of the constrained resource, direct labor! . Given the information in the problem so far, what product me do you recommend d-1 Calculate the contribution margin for each type of dress thing the table below 6-2. How much operating profit should your recommended productie generate! Suppose that the company could expand its labor capacity by running an extra shit that could provide up to 11.500 more hours. The det sbor cost would increase to sto 57 per hour for all hours of detect laborused during the additional What additional product should Astfecture and what addicional profit would be expected with the use of the added that Complete the guestion by entering your answers in the tabs below einistration The company faces two is the volume of each sype of shit that can see maximum annual demand) and (235.000 direct labor hours per year caused by the plant layout Required: -1 Assuming the company can satisfy the annual demand calculate the contribution margin for each type of dress shut using the table below #-2. How much operating profit could the companyes it were able to sousty the annual demand? b-1. Compute the contribution margin for each shit per the constrained resource Cirect bor b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem sola. Whet product my do you recommend d-1 Calculate the contribution margin for each type of cress shirt using the table below 4-2 How mach operating profit should your recommended product mes generate? e. Suppose that the company could expand its labor capacay by turning an extre shit that could provide up to 1500 more hours. The direct labor cost would increase from $15 to St per hour for at hours of deator used during the additional shift What additional produces should Austin manufacture and what adomonal pront would be expected with the use of the added shift? Complete this question by entering your answers in the tabs below. Pedal Red See Reg Da Red Seat Assuming the many can satisfy the land, Gculate the contributari for each type of dress shirt using the table belon Te Totalt Contato 05 OS Reg A2 > mereden type of shirt that it can sell (see maximum annual demand) and (2) 35,000 direct labor-hours per year caused by the plant layout Required: -1 Assuming the company can satisty the annual demand, calculate the contribution margin for each type of dress shirt using the table below -2. How much operating profit could the company earn if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each shirt per the constrained resource, direct labor. b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem so far, what product mix do you recommend? d-1. Calculate the contribution margin for each type of dress shirt using the table below. d-2. How much operating profit should your recommended product mix generate? e. Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 11.500 more hours. The direct labor cost would increase from $13 to $17 per hour for all hours of direct labor used during the additional shift What additional products) should Austin manufacture and what additional profit would be expected with the use of the added shift? Complete this quition by entering your answers in the tabs below. Reg A1 Reg A2 Reg B1 Req B2 Reg Reg Di Reg D2 RegE How much operating profit could the company earn if it were able to satisfy the annual demand? Operating profit Required: -1 Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below .-2. How much operating profit could the company ear if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each shirt per the constrained resource, direct labor b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem so far, what product mix do you recommend? d-1 Calculate the contribution margin for each type of dress shirt using the table below. d-2. How much operating profit should your recommended product mix generate? e. Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 11500 more hours. The direct labor cost would increase from $13 to $17 per hour for all hours of direct labor used during the additional shift What additional products) should Austin manufacture and what additional profit would be expected with the use of the added shift? Complete this question by entering your answers in the tabs below. Req Ai Reg A2 Reg B1 Ree 32 Reg Reg D1 Reg D2 ReqE Compute the contribution margin for each shirt per the constrained resource, direct labor. (Do not round intermediate calculations. Round your final answers to 3 decimal places.) Basic Focal Contribution margin Reg A2 Reg 2 > per year caused by the plant layout Required: -- 1. Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below -2. How much operating profit could the company earn if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each shirt per the constrained resource, direct labor b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem so far, what product mo do you recommend? d-1 Calculate the contribution margin for each type of dress shirt using the table below. d-2. How much operating profit should your recommended product mix generate? e. Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 11.500 more hours. The direct labor cost would increase from $13 to $17 per hour for all hours of direct labor used during the additional shift. What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Reg B1 Reg 2 Regc Reg Di Reg D2 ReqE Which of the three product lines makes the most profitable use of the constrained resource, direct labor? Classic Basic Formal provide up to 11,500 more hours. The direct labor cost would increase from $15 to $17 per hour for all hours of direct labor used during the additional shift. What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? Complete this question by entering your answers in the tabs below. Red A1 Reg AZ Req B1 Req B2 Reg. Reg D1 Reg D2 RegE Calculate the contribution margin for each type of dress shirt using the table below. Basic Classic Total revenue Less variable manufacturing costs Total costs Contribution margin 0 05 5 0 e to search i Problem 4-71 (Algo) Optimum Product Mix (LO 4-4) Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable moc Sales prices, demand and use of manufacturing inputs follow. 5 Basic 31 23,000 Sales price Parimun annual demand (units) Input requirement per unit Direct material Direct labor Classic 5 60 13,000 Forsal $ 33,00 170 0.8 yards 0.6 hours 2.2 yards 2 hours 0.9 yards 7 hours Costs Variable costs Materials Direct labor Factory overhead Mariceting Annual fixed costs Manufacturing Marketing Administration 5 5 $ 17 per yard 13 per hour 5 per direct laber-hour 10 of sales price $39,000 59,500 333.000 The company faces two limits: (1) the blume at each type of shirt that it can sell (see maximum annual demand) and (2135,000 direct labor-hours per year caused by the plant layout Required: -1 Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below -2. How much operating profit could the company eam it it were able to satisfy the annual demand? -1. Compute the contribution margin for each shirt per the constrained resource, direct labor b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem so far, what product mix do you recommend? d-1 Calculate the contribution margin for each type of dress shirt using the table below. d-2. How much operating profit should you rernmm Problem 4-71 (Algo) Optimum Product Mix (LO 4.4) Austin Enterprises makes and sells three types of dress shirts Management is trying to determine the most profitable mix Sales prices, demand, and use of manufacturing inputs follow 31 1 60 13,000 Pormal $ 170 33,000 Sales price ciutaleand unit) Input requirement per unit Direct mterial Direct later 8 yards 8.6 hours 9.2 was 2 hours 0.9 yards 7 hoes 5 5 $ Costs Variable costs Materials Direct labor Factory overed Martin Annual fixed costs Manufacturing Merseting Administration 17 per yard 13 per hour 5 per direct labor-hour 10 of sales price $39,000 59.59 $33,000 The company faces two limits: (1) the volume of each type of shit that it can sell see maximum annual demand) and (235.000 direct labor-hours per year caused by the plant layout Required: 6-1 Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below 2-2 How much operating profit could the company ear if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each shit per the constrained resource, direct labor b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem so far, what product mix do you recommend? d-1. Calculate the contribution margin for each type of dress shirt using the table below d-2 How much operating profit should your recommended product mix generate! Suppose that the company could expand as labor capacity by running an extra shift that could provide up to 1500 more hours. The duect labor cost would increase from $13 to $17 per hour for all hours of direct labor used during the additional shift What additional products) should Austin manufacture and what additional profit would be expected with the use of the added shift
