Consider a company who is producing air filtration units using marconil, a recently developed high-tech product. The company had the following two suppliers of marconil last year and the air filtration sales were at $840,000.
| Company | Purchases (in pounds) |
| A | 2,500 |
| B | 1,000 |
| Price per pound | $2.5 |
Fill out the following table for last year.
| Filter Sales ($) | |
| Marconil Purchases in pounds | |
| Marconil Purchases in Dollars | |
| Sales Dollar per Pound Marconil | |
| Sales Dollar per $1 of Marconil | |
| Marconil $ as % of sales | |
| Manufacturing Cost (30% of sales) | |
| General and Administrative cost (24% of sales) |
Consider a company who is producing air filtration units using marconil, a recently developed high-tech product....
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Delta Company produces a single product. The cost of producing
and selling a single unit of this product at the company’s normal
activity level of 103,200 units per year is:
Direct materials
$
2.30
Direct labor
$
2.00
Variable manufacturing overhead
$
0.70
Fixed manufacturing overhead
$
5.25
Variable selling and administrative expenses
$
2.00
Fixed selling and administrative expenses
$
1.00
The normal selling price is $19.00 per unit. The company’s
capacity is 132,000 units per year. An order...
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