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Decision making #2-Use of Limited Resources-Singe Constraint Bush Manufacturing has 25,000 labor hours available for producing M and N. Consider the following information: M N Required Labor per unit in hours 4 2 Maximum demand in units 8,000 7,000 Contribution Margin per unit $8 $6.00 Required: What is the optimal product mix(how many M and N should be produced)? Explain your answer and show computations. You must tell me how many of Product M and N should be produced.
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Part 3 contains 2 Decision making recommendations that are independent of each other. Covers material in Module 17. Make sure you show your work. Decision Making #1-Sell or Process Further Joint Product Decision XYZ manufactures A and B from a joint process cost = $70,000. Six thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $10,000 and then sold for $22. Ten thousand pounds of B can be...
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Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B $53.00 13.00 Product C Sales price $83.00 $43.00 19.90 35.90 Variable costs per unit Fixed costs per unit Required number of labor hours 5.00 5.00 5.00 3.00 1.50 2.50 Cordova currently is limited to 45,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A...
Hy work Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she is finding it hard to keep up with demand. She knows that she cannot fill all of her orders for both items, so she decides she must determine the optimal sales mix given the resources she has available. Information about the desks and chairs follows. Selling price per unit Variable costs per unit Contribution margin per unit Direct labor...
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Tyson Corner Manufacturing produces two bearings: C15 and C19. Data regarding these two bearings follow C15 C19 2.00 2.50 Machine hours required per unit Standard cost per unit Direct material $2.50 $4.00 Direct labor 5.00 4.00 Manufacturing overhead: Variable 3.00 2.50 Fixed** 4.00 5.00 Total $14.50 $15.50 * Applied on the basis of direct labor hours Applied on the basis of machine hours ** The company requires 8,000 units of C15 and 11,000 units of C19....
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- X More Info Data Table th that hour. Fi two sizes only 3,40 þperating þins is limite Large optimal pd $ Organize It Operating Income from Optimal Product Mix Number of bins per period 57,800 Contribution margin per bin 4.60 Total contribution margin $ 265,880 Less: Fixed expenses (105,000) $...
Product A Product B Selling Price $25 $20.40 Direct Materials($2/lb) 4.00 6.00 Direct Labor($6/hr) 6.00 3.00 Variable Overhead 2.00 .80 Fixed Overhead 1.60 1.60 Variable selling expense 1.00 1.00 Fixed Selling/administrative Expense 2.40 17.00 2.40 14.80 Net Income $8.00 $5.60 The company has a maximum 1,000 labor hours available for the upcoming period. This represents the only internal constraint on capacity. The company keeps no finished goods inventory and currently estimates a maximum demand of 350 units of Product A...
Please include details and show formulas on how to complete the problem.. Thanks Columbus Company provides the following ABC costing information: Activities- Total Costs/ Activity-cost drivers = Labor $336,000/ 8,000 hours Gas $84,000/ 7,000 gallons Invoices $180,000 /7,500 invoices Total costs $600,000 The above activities used by their three departments are: Lawn Department labor- 3,100 hours.. Bush Department- labor 1,500 hours.. Plowing Department Labor 3,400 hours Gas Lawn= 1,900 gallons... Bush= 900 gallons... Plowing= 4,200 gallons Invoices Lawn= 1,300 invoices.......
Tra c es tipes of Regular and was the c a se and related demand is such could use of machine hos producing model Them es are through the same production department Potepinis Data Teadlight Product Me Analysis TreadLight Product Mix Analysis Deluxe Regular Contribution margin for equivalent number of direct labor hours Contribution margin for equivalent number of machine hours Contribution margin per unit Fixed costs per unit Sale price per unit Units produced with equivalent number of direct...
The following information applies to the products of Solomon Company. Selling price per unit Variable cost per unit Product A $14 12 Product B $13 10 Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately. Required a. One unit of Product A requires 1 hour of labor to produce, and one unit of Product B requires 5 hours of labor to produce. Due to labor constraints, demand is higher than...
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price $ 41.00 $ 51.00 $ 81.00 Variable costs per unit 20.00 13.50 34.50 Fixed costs per unit 9.00 9.00 9.00 Required number of labor hours 1.50 2.50 3.00 Cordova currently is limited to 45,000 labor hours per month. Cordova’s marketing department has determined the following demand for its products: Product A 15,000...