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Saved Ibsen Company makes two products from a common input. Joint processing costs up to the split off point total $46,500 a year The company
Saved Ibsen Company makes two products from a common input. Joint processing costs up to the split off point total $46,500 a year The company allocates these costs to the joint products on the basis of their total sales values at the split-off point Fach product may be sold at the split-off point or processed further. Data concerning these products appear below Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Required: Product X $ 27,900 Total $ 30,000 $ 24,400 Product Y $ 18,600 $ 20,000 $18,700 $ 50,900 $ 48,200 $ 58,700 $ 43,100 $106,999 a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? a c Minimum acceptable amount d. Minimum acceptable amount Holton Company makes three products in a single facility. Data concerning these products follow: Selling price per unit Direct materials Direct labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in units A Product B $188.60 $82.00 $ 75.50 $42.00 C $ 162.20 $ 97.50 $ 58.90 $ 11.20 $ 32.60 57.90 3,000 $ 13.40 $4.40 $ 3.20 4.00 1,000 $ 29.20 $13.60 $ 8.40 2.00 2,000 The mixing machines are potentially the constraint in the production facility. A total of 14,000 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? c. Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? Complete this question by entering your answers in the tabs below. Required A Required B Required C How much of each product should be produced to maximize net operating income? (Round Final answers to the nearest whole unit.) Product A Product B Product C Optimal production Holton Company makes three products in a single facility. Data concerning these products follow Selling price per unit Direct materials A $188.60 Product B $ 82.00 Direct labor Variable manufacturing overhead $ 58.90 $ 75.50 $42.00 $13.40 $ 162.20 $ 97.50 $ 29.20 $ 11.20 $ 4.40 $ 13.60 Variable selling cost per unit Mixing minutes per unit $ 32.60 $ 3.20 $ 8.40 Monthly demand in units 57.90 3,000 2.00 2,000 4.00 1,000 The mixing machines are potentially the constraint in the production facility. A total of 14,000 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? c. Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? Complete this question by entering your answers in the tabs below. Required A Required B Required C Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round your intermediate calculations and final answer to decimal places.) Mixing machine capacity
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