Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

New Year Pyrotechnics (NYP) is a fireworks manufacturing company, Annual celebrations are rapidly approaching, and NYP has only 50 pounds of powder left. NYP manufactures

New Year Pyrotechnics (NYP) is a fireworks manufacturing company, Annual celebrations are rapidly approaching, and NYP has only 50 pounds of powder left. NYP manufactures three types of fireworks: Aerials, Grounders, and Poppers. The following information shows the information regarding the production and sale of the fireworks:

Aerials Grounders Poppers

Pounds of Powder per Unit 2 lbs. 0.75 lbs 0.25 lbs

Contribution Margin per Unit. $30 $10.5 $4

1) Which firework gives NYP the highest contribution margin per pound of powder?

2) Suppose the market demands for Aerials, Grounders, and Poppers are 20 units, 40 units, and 80 units, respectively. How many units of Aerials, Grounders, and Poppers should NYP produce to maximize profit?

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

More Books

Students also viewed these Accounting questions