practice problems

Question 10 1 pts Rice Corporation manufactures two styles of lamps-a Bedford Lamp and a Lowell Lamp. The following per unit data are available: Lowell Lamp $36 $26 $14 Bedford Lamp Sales price $26 Variable costs Machine hours required for one lamp Total fixed costs are $50,000. Machine hour capacity is 25,000 hours per year. Assuming that the company can sell as many products as it can make, which product mix would deliver the highest operating income? 6,250 Bedford Lamps and 6,250 Lowell Lamps 6,250 Bedford Lamps and O Lowell Lamps O Bedford Lamps and 5,000 Lowell Lamps 5.000 Bedford Lamps and 6.250 Lowell Lamps > Question 12 1 pts Malmo Avionics makes aircraft instrumentation. Its basic navigation radio requires $70 in variable costs and $2,000 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $25 per unit of variable costs, plus an increase in fixed costs of $800 per month. The marketing manager believes that they would be able to increase the sales price of the radio from $260 to $300. Malmo sells 30 radios per month. If Malmo decides to further process the radio, monthly operating income would increase by $3,650 decrease by $350 increase by $1,200 decrease by $3,650 Question 13 1 pts Princeton Avionics makes aircraft instrumentation. Its basic navigation radio requires $90 in variable costs and $3,000 per month in fixed costs. Princeton sells 20 radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $30 per unit of variable costs, plus an increase in fixed costs of $400 per month. The current sales price of the radio is $270. The CEO wishes to improve operating income by $1,100 per month by selling the enhanced version of the radio. In order to meet this target, the sales price to be charged for the enhanced product $375 per unit $105 per unit $300 per unit $390 per unit