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QUESTION 8 Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit selling price

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QUESTION 8 Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit selling price $400 $590 $1220 Unit costs: Variable manufacturing (220) (280) (720) Fixed manufacturing (50) (140) (290) Fixed selling and administrative (60) (25) (140) Unit profit $70 $145 $70 Demand in units Machine-hours per unit 170 30 140 40 170 170 The maximum machine-hours available are 6300 per week. How many of each product should be produced per month using the short-run profit maximizing strategy? 170 30 40 23 140 0 170 170 0 0 140 7 QUESTION 9 Jupiter Corporation incurred fixed manufacturing costs of $18,000 during 2015. Other information for 2015 includes: The bridgebed denominator level is 2400 units Urits produced to tal 2400 units Units sold total 15DD units Variable cost per unit is $6 Beginning inventory is zero. The fixed manufacturing cost rate is based on the budgeted denominator level. The operating income using variable costing will be as compared to the operating income under absorption costing. lower by $6750.00 lower by $2250.00 O higher by $2250.00 higher by $6750.00

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