Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Spring, Incorporated manufactures two products. It currently has 1,425 hours of direct labor and 1,750 hours of machine time available per month. The following table
Spring, Incorporated manufactures two products. It currently has 1,425 hours of direct labor and 1,750 hours of machine time available per month. The following table lists the contribution margin, labor and machine time requirements, and demand for each product: Unit contribution margin Labor time Demand Machine time Product A $ 12.00 700 units 3/4 hour Product B $ 8.00 1,400 units 1 hour 1 hour 3/4 hour What is the total contribution margin if Spring prioritizes production according to its limited resources? Multiple Choice $11,200 $19,600 $15,600 $8,400 Avocado Company has received a special order for 2,300 units of its product at a special price. The product normally sells for $500 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Cost per Unit $ 122 86 63 188 $ 459 Assume that Avocado has sufficient capacity to fill the order without harming normal production and sales. What minimum unit price should Avocado charge to make a $9,200 incremental profit? Multiple Choice $271 $500 $459 $275
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started