Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 9.3 (Total:24 marks) Burnaby traders makes four products in a single facility. Following information regarding products is given: Product A B D Selling Price

image text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribed
Question 9.3 (Total:24 marks) Burnaby traders makes four products in a single facility. Following information regarding products is given: Product A B D Selling Price per Unit $35.30 $30.20 $20.80 $26.00 Variable Manufacturing Cost per Unit $16.50 $15.80 $7.90 $8.50 Variable Selling Cost per Unit $3.80 $1.60 $1.90 $3.30 Milling Machine Minutes per Unit 3.20 1.80 2.20 2.50 Monthly Deman in Units 4,000 1,000 3,000 1,000 Maximum minutes on all machines (22,600) Required: 1) How many minutes of milling machine time would be required to satisfy demand for all four products? 2) Which product makes the LEAST profitable use of the milling machines? 3) Which product makes the MOST profitable use of the milling machines?Question 9.4 (Total: 26 marks) Cavendish Cheese Company makes three products within their single facility. Data concerning these products follow: Products A B C Selling price per unit $67.90 $57.70 $43.90 Direct materials $12.10 $10.30 58.60 Direct labour $14.10 $8.00 $6.80 Variable manufacturing $2.60 $2.20 $1.80 overhead Variable selling cost per $2.50 $2.20 $2.50 unit Mixing minutes per unit 2.70 3.30 4.70 Monthly demand in units 1,000 3,000 3,000 The mixing machines are potentially a constraint in the production facility. A total of 25,800 minutes are available per month on these machines. Direct labour is a variable cost in this company. Submission Instructions:1. How many minutes of mixing machine time would be required to satisfy the demand for all three products? 2. How much of each product should be produced, rounded to the nearest whole unit, to maximize operating income? 3. Up to how much should the company be willing to pay, rounded to the nearest whole cent, for one additional minute of mixing machine time if the company has made the best use of the existing mixing machine capacity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Debra C. Jeter, Paul K. Chaney

7th edition

1119373204, 9781119373254 , 978-1119373209

More Books

Students also viewed these Accounting questions

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago