Question 8 1 point Hillcrest Co. sells two products. Product A sells for $100 per unit and has unit variable costs of $60. Product B sells for $70 per unit, and has unit variable costs of $50. Currently, Hillcrest sells three units of product B for every one unit of product A sold. Hillcrest has fixed costs of $750,000. What is Hillcrest's break-even point in units? 22,500 units of A and 7,500 units of B 15,000 units of A and 15,000 units of B 7,500 units of A and 22,500 units of B 30,000 units of A and 30,000 units of B 0 Question 10 1 point Hamilton Co. sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50 per unit and has unit variable costs of $20. Currently, Hamilton sells three units of Product B for every two units of Product A sold. Hamilton has fixed costs of $760,000. What is the number of units of each product that would be sold at the break-even point with this sales mix? 12,000 units of A and 8,000 units of B 8,000 units of A and 12,000 units of B 20,000 units of A and 20,000 units of B 10,000 units of A and 10,000 units of B Question 6 1 point Pierson Co. produces three products. It currently has a shortage of machine hours because one of its two machines is down and cannot be repaired. It has ordered a new machine, but it will be two months before the new machine will be delivered and installed. The selling price, costs, and machine time requirements of the three products are as follows: Product A Product B Product C Selling Price $5.00 $3.00 $5.00 Variable Costs per Unit $3.50 $2.00 $2.00 Machine Hours per Unit 0.75 0.25 1.00 Pierson has unlimited demand for all its products. Which product or products should Pierson Co. produce to maximize profit until it gets the new machine installed? Product Conly Products A, B, and C Product B only Products B and C Question 5 1 point Marcum Co. has received a special order for 6,000 units of its product at a special price of $90. The product normally sells for $120 and has the following manufacturing costs: Cost Per Unit Direct Material $36 Direct Labor $24 Variable Manufacturing Overhead $18 Fixed Manufacturing Overhead $12 Total $90 Assume that Marcum has sufficient capacity to fill the special order. If it accepts the order, what effect will the order have on the company's short-term profit? $252,000 decrease $180,000 increase $0 $72,000 increase Question 9 1 point Ross Co. manufactures two products. It currently has 1,000 hours of machine time available per month. The table below lists the contribution margin, machine time requirements, and demand for each product: Product A Product B Unit Contribution Margin $15.00 $12.00 Demand 1,000 units 2,000 units Machine time 0.75 hour 1 hour How much of each product should Ross manufacture? 1,000 units of A and O units of B 1,000 units of A and 2,000 units of B O units of A and 2,000 units of B 1,000 units of A and 250 units of B
