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Use the following information to answer questions 10-13 Conklin makes 2 products, A and B. The contribution margin for A is $600 per unit and
Use the following information to answer questions 10-13 Conklin makes 2 products, A and B. The contribution margin for A is $600 per unit and for B is $900. Conklin Company only has 10000 pounds of raw materials available to make the products. It requires 20 pounds to make one unit of A and 50 pounds to make one unit of B Fixed expenses are $150,000. Demand for A is 300 units and for B is 250 10. How would one describe materials in this situation? a) As a demand constraint b) As a supply constraint c) As a period cost d) As a sunk cost 11. How many units should we make of the two products? a) b) c) d) 125 of A and 250 of B 250 of A and 133 of B 300 of A and 80 of B 300 of A and 250 of B 12. If there were no demand constraints, how many units should we make? a) 300 of A and 333 of B b) 500 of A and 333 of B c) 500 of A and no B d) 500 of A and 200 of B B
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