All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C....
All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product:
|
Model A |
Model B |
Model C |
|
|
Selling price |
$ ? |
$50 |
$55 |
|
Direct materials costs |
$5 |
$5 |
$5 |
|
Direct labor costs ($15 per labor hour) |
$15 |
$15 |
$30 |
|
Variable support costs ($3 per machine hour) |
$3 |
$6 |
$9 |
|
Fixed support costs |
$10 |
$10 |
$10 |
Assuming that machine hours are limited (i.e., this is the constrained resource), at what price does Model A become the most profitable model to produce?
Group of answer choices
A. Any price above $55
B. Any price above $47
C. Any price above $23
D. Any price above $35
Homework Answers
Contribution for MODEL B = Selling price - direct materials cost - direvt labor costs - variable support costs = $50 - $5 - $15 - $6 = $24.
Contribution per machine per hour = contribution / machine hours = $24 / 2 hours = $8 per hour.
Contribution for model c = $55 - $5 - $30 - $9 = $11
Contribution per machine hour = $11 / 3 hours = $3.67 per hour.
Variable costs for model A = $5 + $15 + $3 = $23 .
Contribution for model A will be maximum when the selling price is maximum.
Therefore, selling price of $55 will be most profitable.
Contribution per machine hour at $55 selling price = ( $55 - $23 ) / 1 hour = $32 per hour.
Therefore, at this selling price Model A Will be most profitable.
Machine hours are calculated by formula = variable support costs / $3 per machine hours.
Add Answer to:
All Terrain Tires manufactures three different off-road ATV
tires: Model A, Model B, and Model C....
$90 Norton's Mufflers manufactures three different product lines: Model X, Model Y, and, Model Z. Considerable...
$90 Norton's Mufflers 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 Selling price $80 $100 Direct materials 30 Direct labour ($10 per hour) 15 15 20 Variable support costs ($5 per machine-hour) 5 10 10 Fixed support costs 20 20 30 30 20 Required: a. For each model, compute the contribution margin per unit.[2 Mark) b. For...
12. Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable...
12. Braun's Brakes 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 2 Selling price S50 S60 $70 Direct materials 6 6 6 Direct labor (S12 per hour) 12 12 24 Variable support costs (S4 per machine- hour) 4 8 8 Fixed support costs 10 10 10 If there is a machine breakdown, which model is the most profitable...
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...
Pan’s Products Inc. manufactures three different product lines, which are called Orange, Blue, and Green. Considerable...
Pan’s Products Inc. manufactures three different product lines, which are called Orange, Blue, and Green. Considerable market demand exists for all models. The following per unit data apply: Orange Blue Green Selling price $180 $195 $220 Direct materials 70 70 70 Direct labor ($20 per hour) 30 30 40 Variable support costs ($12 per machine-hour) 12 24 24 Fixed support costs 40 40 40 a. For each model, compute the...
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...
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...
5. El Paso Industries produces two products: the Deluxe model and the Ultimate model. Information about...
5. El Paso Industries produces two products: the Deluxe model and the Ultimate model. Information about the Deluxe model is as follows: Selling price - $14 Direct materials - $5 Direct labor - $7 Labor time required - 1 hour Machine time required - 2 hours Information about the Ultimate model is as follows: Selling price - $25 Direct materials - $8 Direct labor - $14 Labor time required - 2 hours Machine time required - 3 hours El Paso...
The Gentry Corporation produces three products with the following costs and selling prices: Product A Product...
The Gentry Corporation produces three products with the following costs and selling prices: Product A Product B Product C Selling price per unit $10 $12 $18 Variable cost per unit $5 $11 Direct labor hours per unit 2.0 2.5 Machine hours per unit 3.5 2.0 2.5 If Gentry has a limit of 9,000 direct labor hours but no limit on machine hours, then the ranking of the products from the most profitable to the least profitable use of the constrained...
Help, please. I have test Problem 9 (10 points) Answer the following questions using the information...
Help, please. I have test
Problem 9 (10 points) Answer the following questions using the information below: Braun's Rraleem uns Brakes 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 $50 $60 $70 Selling price Direct materials Direct labor ($12 per hour) Variable support costs (54 per machine-hour) Fixed support costs 12 24 4 10 10 10 Which...
SE Problem 10 CLS Simply Chs five stos Virgi Problem 9 (10 points) Answer the following...
SE Problem 10 CLS Simply Chs five stos Virgi Problem 9 (10 points) Answer the following questions using the information below: Braun's Brakes 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. 6 Model X Model Y Model Z Selling price $50 $60 $70 Direet materials Direct labor (S12 per hour) Variable support costs ($4 per machine-hour) 4 Fixed support costs 10 10 10...
$90 Norton's Mufflers 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 Selling price $80 $100 Direct materials 30 Direct labour ($10 per hour) 15 15 20 Variable support costs ($5 per machine-hour) 5 10 10 Fixed support costs 20 20 30 30 20 Required: a. For each model, compute the contribution margin per unit.[2 Mark) b. For...
12. Braun's Brakes 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 2 Selling price S50 S60 $70 Direct materials 6 6 6 Direct labor (S12 per hour) 12 12 24 Variable support costs (S4 per machine- hour) 4 8 8 Fixed support costs 10 10 10 If there is a machine breakdown, which model is the most profitable...
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...
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...
5. El Paso Industries produces two products: the Deluxe model and the Ultimate model. Information about the Deluxe model is as follows: Selling price - $14 Direct materials - $5 Direct labor - $7 Labor time required - 1 hour Machine time required - 2 hours Information about the Ultimate model is as follows: Selling price - $25 Direct materials - $8 Direct labor - $14 Labor time required - 2 hours Machine time required - 3 hours El Paso...
The Gentry Corporation produces three products with the following costs and selling prices: Product A Product B Product C Selling price per unit $10 $12 $18 Variable cost per unit $5 $11 Direct labor hours per unit 2.0 2.5 Machine hours per unit 3.5 2.0 2.5 If Gentry has a limit of 9,000 direct labor hours but no limit on machine hours, then the ranking of the products from the most profitable to the least profitable use of the constrained...
Help, please. I have test
Problem 9 (10 points) Answer the following questions using the information below: Braun's Rraleem uns Brakes 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 $50 $60 $70 Selling price Direct materials Direct labor ($12 per hour) Variable support costs (54 per machine-hour) Fixed support costs 12 24 4 10 10 10 Which...
SE Problem 10 CLS Simply Chs five stos Virgi Problem 9 (10 points) Answer the following questions using the information below: Braun's Brakes 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. 6 Model X Model Y Model Z Selling price $50 $60 $70 Direet materials Direct labor (S12 per hour) Variable support costs ($4 per machine-hour) 4 Fixed support costs 10 10 10...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago