HomeworkLib
Question

MC Qu. 22 Ockerman Corporation would like to determine... Ockerman Corporation would like to determine the...

MC Qu. 22 Ockerman Corporation would like to determine...

Ockerman Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions. For example, the selling price of product A31N is $148.00 and its unit variable cost is $113.20. One unit of the product requires 7 ounces of the constrained resource. Monthly sales are 6,200 units. What is the profitability index for product A31N? (Round your answer to 2 decimal places.)

$16.17 per ounce

$4.97 per ounce

$21.14

0.24

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

B. $4.97 per ounce

Profitability index for a volume trade-off decision = Unit contribution margin / Amount of the constrained resource required by one unit = ($148.00 - $113.20) / 7 ounces = $34.80 / 7 ounces = $4.97 per ounce

0 0
Add a comment
Know the answer?
Add Answer to:
MC Qu. 22 Ockerman Corporation would like to determine... Ockerman Corporation would like to determine the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Coviello Corporation would like to determine the relative profitability of the company's products for purposes of...

    Coviello Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions. For example, the selling price of product C98I is $375, its unit variable cost is $261.00, and its unit contribution margin is $114.00. One unit of the product requires 15 minutes of the constrained resource. Monthly sales are 4,470 units. What is the profitability index for product C98I? 0.30 $25.00 per minute $509,580 $7.60 per minute

  • TB MC Qu. 12-59 Lusk Corporation produces and sells ... Lusk Corporation produces and sells 15,700...

    TB MC Qu. 12-59 Lusk Corporation produces and sells ... Lusk Corporation produces and sells 15,700 units of Product X each month. The selling price of Product X is $27 per unit, and variable expenses are $21 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $72,000 of the $107,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X...

  • TB MC Qu. 12A-96 Chruch Corporation manufactures numerous ... Chruch Corporation manufactures numerous products, one of...

    TB MC Qu. 12A-96 Chruch Corporation manufactures numerous ... Chruch Corporation manufactures numerous products, one of which is called Tau-42. The company has provided the following data about this product: Unit sales (a) Selling price per unit Variable cost per unit Traceable fixed expense 63,000 $ 51.00 $ 34.00 $1,030,000 Management is considering decreasing the price of Tau-42 by 8%, from $51.00 to $46.92. The company's marketing managers estimate that this price reduction would increase unit sales by 10%, from...

  • Chapter 12 Quiz 0 Seved Help Save & Exit Submit TB MC Qu. 12-59 Lusk Corporation...

    Chapter 12 Quiz 0 Seved Help Save & Exit Submit TB MC Qu. 12-59 Lusk Corporation produces and sells ... Lusk Corporation produces and sells 15,300 units of Product X each month. The selling price of Product X is $23 per unit, and variable expenses are $17 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $103.000 in monthly fixed expenses charged to Product X would not be...

  • TB MC Qu. 7-67 Feldpausch Corporation has provided the following... Feldpausch Corporation has provided the following...

    TB MC Qu. 7-67 Feldpausch Corporation has provided the following... Feldpausch Corporation has provided the following data from its activity-based costing system Activity Cost Pool Assembly Processing orders Total Cost Total Activity $1,137,360 84,000 machine-hours $ 28,479 1,100 orders inspection- $ 97,155 1,270 hours Inspection The company makes 470 units of product W268 a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.30 per unit and its direct...

  • TB MC Qu. 9-217 Lenci Corporation manufactures and sells ... Lenci Corporation manufactures and sells a...

    TB MC Qu. 9-217 Lenci Corporation manufactures and sells ... Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element...

  • TB MC Qu. 8-103 Rokosz Corporation makes one product and ... Rokosz Corporation makes one product...

    TB MC Qu. 8-103 Rokosz Corporation makes one product and ... Rokosz Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The budgeted selling price per unit is $104. Budgeted unit sales for October, November, December, and January are 6,900, 7,100, 11,300, and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale and 70% in...

  • TB MC Qu. 12-130 Ahrends Corporation makes 70,000 units per year... Abrends Corporation makes 70.000 units...

    TB MC Qu. 12-130 Ahrends Corporation makes 70,000 units per year... Abrends Corporation makes 70.000 units per year of a parties in the products and actres Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 17.10 An out de supplier has offered to the company all of these sit needs for $4850 the company accept the other the snow being used to make the part could be used to make more units of a product that...

  • Must be flowchart in a raptor program: The manager of a Super Supermarket would like to...

    Must be flowchart in a raptor program: The manager of a Super Supermarket would like to be able to compute the unit price for products sold there. To do this, the program should input the name and price of an item per pound and its weight in pounds and ounces. Then it should determine and display the unit price (the price per ounce) of that item and the total cost of the amount purchased. You will need the following variables:...

  • TB MC Qu. 9-221 Piechocki Corporation manufactures... Piechocki Corporation manufactures and sells a single product. The...

    TB MC Qu. 9-221 Piechocki Corporation manufactures... Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 7,000 units, but its actual level of activity was 6,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit Revenue...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT