Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Osmond Inc, manufactures three product lines: MH123, KI456, and PT789. Currently, all three product lines are in demand. For the year 2021, the following per
Osmond Inc, manufactures three product lines: MH123, KI456, and PT789. Currently, all three product lines are in demand. For the year 2021, the following per unit data has been compiled by the company's cost accountant: MH123 KL456 PT789 Selling price $176.00 $199.00 $279.00 Direct materials $45.00 $45.00 $45.00 Direct labour (518 per labour hour) $54.00 $54.00 $108.00 Variable support costs (S8 per machine-hour) $8.00 $16.00 $16.00 Fixed support costs $20.00 $20.00 $20.00 Required I (A) Compute the contribution margin per unit for each of the product lines. (B) Compute the contribution margin per machine hour per unit for each of the product lines. (C) For 2021, assume that demand will be 400 units of the MH123, 200 units for the KL456, and 300 units for the P1789, and that capacity is limited to 1,200 machine hours. Given this information, how many units of each product line should the company produce
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668fccd5cb4e2_117668fccd560455.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started