Question
please show work on how you got the answer. DigiCom Corporation produces three sizes of television sets: 12-inch screen, 26-inch screen, and 40-inch screen. Revenue
please show work on how you got the answer.
DigiCom Corporation produces three sizes of television sets: 12-inch screen, 26-inch screen, and 40-inch screen. Revenue and cost information per unit for each product is as follows:
12-inch screen | 26-inch screen | 40-inch screen | |
Selling price | $125 | $330 | $600 |
Direct materials | 40 | 64 | 187 |
Direct labor | 8 | 24 | 48 |
Variable overhead | 20 | 54 | 100 |
Fixed overhead | 5 | 10 | 16 |
Variable selling costs | 10 | 20 | 85 |
Fixed selling costs | 15 | 6 | 25 |
Maximum units that can be sold next month | 6,000 units | 2,000 units | 4,200 units |
Hours per unit required on the specialized equipment | 0.5 | 1.5 | 3 |
The company has a constraint on the amount of specialized equipment time available to produce television sets. The total amount of equipment time available for next month
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