Homework Answers
(a) If only X is manufacture, BEP = Fixed cost/Contribution pu of X
Contribution pu of X = $120 - $84 = $36
= $180000/$36 = 5000 units
(b) If only Y is manufacture, Margin of Safety = Sale – BEP ($)
BEP in units = $180000/$20 = 9000 units
BEP ($) = 9000 * $80 = $720000
Current sale = $80 * 10000 = $800000
Margin of safety= $800000 - $720000 = $80000
Margin of safety in % = $80000/$800000 * 100 = 10%
(c)
|
X |
Y |
Z |
|
|
Selling price |
$120 |
$80 |
$156 |
|
Variable cost |
$84 |
$60 |
$112 |
|
Contribution per unit (A) |
$36 |
$20 |
$44 |
|
Staff hours (B) |
4 |
2 |
6 |
|
Contribution per hours (A/B) |
$9 |
$10 |
$7.33 |
|
Preference |
2nd |
1st |
3rd |
(d)
|
Preference |
Product |
Demand |
Units Produced (A) |
Staff hrs required pu (B) |
DL Hours Allocated (A * B) |
Balance Hours |
|
1st |
Y |
5000 |
5000 |
2 |
10000 |
(20000 – 10000) =10000 |
|
2nd |
X |
3000 |
2500 |
4 |
10000 |
(10000 – 10000) =0 |
Profit = (Units sold for X * Contribution) + (Units sold for Y * Contribution) – Fixed cost
= (2500 * $36) + (5000 * $20) - $180000 = $10000
Add Answer to:
Question 2. Furniture plc. can manufacture three different types of product (X, Y and Z) using...
ABC Company produces Product X, Product Y, and Product Z. All three products require processing on...
ABC Company produces Product X, Product Y, and Product Z. All three products require processing on specialized finishing machines. The capacity of these machines is 2,250 hours per month. ABC Company wants to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum profit. Following is information about each product: Product X Product Y Product Z Selling price $ 151 $ 120 $ 38 Variable costs 105 58 30 Machine...
ABC Co p any pr tu es Product X Product Y and Product Ζ. All three...
ABC Co p any pr tu es Product X Product Y and Product Ζ. All three products requre processing on specia ized finishing machines. The capatty of these mach es s 210 hours er m m Company wants to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum proft. Folowing ls information atout each product ABC Product XProduct Y Selling price $149 105 $118 50 s 35 Variable costs...
Cari Company produces three products; X, Y and Z. Additionally, they only have 1,000 direct labor...
Cari Company produces three products; X, Y and Z. Additionally, they only have 1,000 direct labor hours available to produce their products. Time requirements and contribution margins per unit for each product are as follows: Product X Product Y Product Z Labor hours Contribution margin per unit $10 $24 $12 Required: a. Which of the three product lines makes the most profitable use of the constrained resource, direct labor hours? What would be the contribution margin if you used all...
Dunford Company produces three products with the following costs and selling prices: Product X...
Dunford Company produces three products with the following costs and selling prices: Product X Y Z Selling price per unit.............................................. $40 $30 $35 Variable costs per unit........................................... 24 16 20 Contribution margin per unit................................. $16 $14 $15 Direct labor hours per unit..................................... 4 2 3 Machine hours per unit.......................................... 5 7 4 If Dunford has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the three products should...
2. King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The...
2. King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, 560 for Product X, $90 for Product Y and S100 for Product Z. Fixed overhead is estimated at S5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4, Each of the machines is available for 40 hours a week and there is no setup time required when...
Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market...
Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z $71 $69 Selling price Direct materials Direct labor ($13 per hour) Variable support costs ($5 per machine - hour) Fixed support costs Which model has the greatest contribution margin per unit? O A. Model X OB. Model Y O C. Model z OD. Both Model X and...
Summit Company manufactures and sells three products; X, Y, and Z. Last year sales of these...
Summit Company manufactures and sells three products; X, Y, and Z. Last year sales of these products were 20,000 units of X, 30,000 units of Y and 50,000 units of Z. The unit contribution margins are $5 for X, $4 for Y, and $3 for Z. Assuming the product mix remains the same and that fixed costs are $222,000, how many units of X must Summit sell to break even? Multiple Choice 10,000 12,000 22,200 44,400 None of these.
Question 2 Grafton Ltd produces three products: X, Y and Z. The company has been using...
Question 2 Grafton Ltd produces three products: X, Y and Z. The company has been using a single direct labour cost percentage to allocate overhead costs to products. Recently, managers of Grafton have noticed that, due to increasing overbeads and loss of market share, the current costing system is in need of replacement. A specific team has been charged with the responsibility of developing a new system of costing based on activities. Production information is as follows: Production volume Selling...
8) Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market dem...
8) Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: $50 Model Z $80 10 Model X Selling price Direct materials 10 Direct labor ($15 per hour) Variable support costs ($5 per machine-hour) 5 Fixed support costs 12 Model Y $66 10 15 10 12 15 12 Which model has the greatest contribution margin per unit? A) Model X B) Model Y...
Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market...
Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X $50 Model Y $63 Model Z $72 Selling price Direct materials Direct labor ($13 per hour) Variable support costs ($4 per machine - hour) Fixed support costs ūcco ü co co co Which model has the greatest contribution margin per machine - hour? O A. Model X O B. Model Y...
ABC Co p any pr tu es Product X Product Y and Product Ζ. All three products requre processing on specia ized finishing machines. The capatty of these mach es s 210 hours er m m Company wants to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum proft. Folowing ls information atout each product ABC Product XProduct Y Selling price $149 105 $118 50 s 35 Variable costs...
Cari Company produces three products; X, Y and Z. Additionally, they only have 1,000 direct labor hours available to produce their products. Time requirements and contribution margins per unit for each product are as follows: Product X Product Y Product Z Labor hours Contribution margin per unit $10 $24 $12 Required: a. Which of the three product lines makes the most profitable use of the constrained resource, direct labor hours? What would be the contribution margin if you used all...
2. King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, 560 for Product X, $90 for Product Y and S100 for Product Z. Fixed overhead is estimated at S5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4, Each of the machines is available for 40 hours a week and there is no setup time required when...
Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z $71 $69 Selling price Direct materials Direct labor ($13 per hour) Variable support costs ($5 per machine - hour) Fixed support costs Which model has the greatest contribution margin per unit? O A. Model X OB. Model Y O C. Model z OD. Both Model X and...
Question 2 Grafton Ltd produces three products: X, Y and Z. The company has been using a single direct labour cost percentage to allocate overhead costs to products. Recently, managers of Grafton have noticed that, due to increasing overbeads and loss of market share, the current costing system is in need of replacement. A specific team has been charged with the responsibility of developing a new system of costing based on activities. Production information is as follows: Production volume Selling...
8) Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: $50 Model Z $80 10 Model X Selling price Direct materials 10 Direct labor ($15 per hour) Variable support costs ($5 per machine-hour) 5 Fixed support costs 12 Model Y $66 10 15 10 12 15 12 Which model has the greatest contribution margin per unit? A) Model X B) Model Y...
Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X $50 Model Y $63 Model Z $72 Selling price Direct materials Direct labor ($13 per hour) Variable support costs ($4 per machine - hour) Fixed support costs ūcco ü co co co Which model has the greatest contribution margin per machine - hour? O A. Model X O B. Model Y...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago