Question
Wright Company produces products I, J, and K from a single raw material input. Budgeted data for the next month is as follows: Product I
Wright Company produces products I, J, and K from a single raw material input. Budgeted data for the next month is as follows: |
Product I | Product J | Product K | |
Units produced | 2,500 | 3,000 | 4,000 |
Per unit sales value at split-off | $23 | $24 | $25 |
Added processing costs per unit | $2 | $4 | $4 |
Per unit sales value if processed further | $27 | $27 | $32 |
If the cost of the raw material input is $92,000, which of the products should be processed beyond the split-off point? |
Product I | Product J | Product K | |
A) | yes | yes | no |
B) | yes | no | yes |
C) | no | yes | no |
D) | no | yes | yes |
Option B
Option D
Option A
Option C
Fahringer Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below: |
BJ | XS | QR | |
Selling price per unit | $104.85 | $528.05 | $557.99 |
Variable cost per unit | $ 81.95 | $429.62 | $419.92 |
Centiliters of compound W | 2.50 | 10.90 | 11.10 |
Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places.) |
BJ,QR,XS
QR,BJ,XS
QR,XS,BJ
XS,BJ,QR
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