TB MC Qu. 23-103 (Algo) Bricktan Incorporated makes three...

Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 719,000 units of Basic, 452,000 units of Classic, and 122,000 units of Deluxe. Bricktan has limited production capacity of 948,000 machine hours. Machine hours per unit are as follows: Basic, 1 hours; Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the total contribution margin if Bricktan chooses the most profitable sales mix?

Multiple Choice

• $8,700,000.

• $10,430,000.

• $16,346,000.

• $19,180,000.

• $13,692,000.

TB MC Qu. 23-108 (Algo) Valber Company is considering eliminating...

Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, all of its variable costs are avoidable, and $153,000 of its fixed costs are avoidable. The impact on Valbers income from eliminating the Phone division is:

	Desktops	Laptops	Tablets	Phones
Sales	$ 365,000	$ 880,500	$ 703,000	$ 978,000
Variable costs	204,000	638,000	531,000	798,000
Contribution margin	161,000	242,500	172,000	180,000
Fixed costs	74,200	177,300	141,800	198,000
Net income (loss)	86,800	65,200	30,200	(18,000)

Multiple Choice

• $8,000 decrease

• $153,000 increase

• $153,000 decrease

• $18,000 increase

• $27,000 decrease