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Question 3 Crane Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on
Question 3 Crane Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased purpose. The machines have a maximum capacity of 6,000 machine hours, and no other products that the company makes use these machines. Sarah Jacob, the company's operations manager, is preparing the production schedule for the coming month and can't seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget. Michael Stoner, the company's controller, has gathered the following information about the two products: Dumbbell Rack Weight Bench $59 Selling price per unit Direct materials Direct labor Variable overhead Fixed overhead Profit per unit Unit sales demand Machine hours per unit $18 4,000 0.50 7,000 0.80 (di) Your answer is correct. Sarah has talked with the marketing department about the situation and suggested that the company raise the sales price on the weight bench to $70 to reduce customer demand. The marketing department believes that at the higher price, demand for the weight bench will drop to 5,840 units. How should Sarah allocate the 6,000 machine hours based on this new information? Machine Hours Weight Bench 4672 1328 Dumbbell rack Click if you would like to Show Work for this question: Open Show Work (d2) x Your answer is incorrect. Try again. Sarah has talked with the marketing department about the situation and suggested that the company raise the sales price on the weight bench to $70 to reduce customer demand. The marketing department believes that at the higher price, demand for the weight bench will drop to 5,840 units. What total contribution margin will Crane earn? J su 207072 Total contribution margin Click if you would like to Show Work for this question: Open Show Work
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