Question
Ontario Company sells products X and Y; 40 percent of the company's total revenue is from X. The contribution margin ratios are 30 percent for
Ontario Company sells products X and Y; 40 percent of the company's total revenue is from X. The contribution margin ratios are 30 percent for X and 60 percent for Y. Fixed costs are $200,000. What would be the total sales required for Ontario to earn a target profit of $40,000 before tax?
WCL has a production capacity limit of 4,000 laser machine hours and 1,000 image machine hours. The direct costs per hour to operate the machines are $15 and $20, respectively. Both machines are operating at 90% of capacity and all current production is sold at $1,500 per unit.Each unit of output requires $250 of direct materials, 4 laser machine hours and 1 image machine hour to produce. Indirect variable overhead costs are $200 per unit, and indirect fixed overhead costs are $225 per unit based on full capacity.
A prospective customer, Company L, has offered to buy 240 units at $1,350 per unit. If the offer is accepted, all 240 units must be delivered by the end of the year. WCL can lease machinery to accommodate the new customer's order at a cost of $70,000. By what amount would WCL's income change if Company L's offer is accepted and the machine is leased?
The actual direct labour rate was $2 per hour lower than the budgeted direct labour rate. What was the actual amount of direct labour time used to produce one lampshade in January?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The information about WCL and lampshade production is irrelevant to the problem of Ontario Company Well focus on solving for Ontario Companys total sales target Heres how to find Ontario Companys tota...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