Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, S78, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, S78, and 532, respectively. The variable costs for cach product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales 7 hours; and Wales I hour. Assume that Widgeon Co. produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time. Product demand does not warrant any more production of that product. The maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour is $7,000 $28,000 $4,000 $35,000 Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, S78, and 532, respectively. The variable costs for cach product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales 7 hours; and Wales I hour. Assume that Widgeon Co. produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time. Product demand does not warrant any more production of that product. The maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour is $7,000 $28,000 $4,000 $35,000
Expert Answer:
Answer rating: 100% (QA)
Solution Answer Particluars Bales Tales Wales Selling Price 55 78 32 Less Variable Cost 20 50 15 Co... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
What does the term contribution margin per unit mean? How is the contribution margin used in cost analysis to support managerial decisions?
-
What is meant by the term contribution margin per unit of scarce resource?
-
Contribution margin per unit approach for break-even and desired profit Information concerning a product produced by Salter Company appears here: Required Determine the following: a. Contribution...
-
Complete the attached SWOT Worksheet using information from the Cotopaxi case. Use your SWOT Worksheet to help you answer the question: What should Davis Smith/Cotopaxi do (for company...
-
Describe the relationship between cost of goods sold and inventory.
-
Solve Prob. 2-1 with \(a=4 \mathrm{~m}, b=5 \mathrm{~m}\). C D E b F
-
A sample of five third graders took a reading test. They then participated in a reading improvement program, and took the test again to determine whether their reading ability had improved. Following...
-
A wet steam at 20bar with a quality of 0.97 (see Problem 7.32) leaks through a defective steam trap and expands to a pressure of 1 atm. The process can be considered to take place in two stages: a...
-
1. [25p] An amortized loan of $75,000 has annual payments for eighteen years, the first occurring exactly one year after the loan is made. The first four payments will be for only half as much as the...
-
From the tenth floor of her office building, Katherine Rally watches the swarms of New Yorkers fight their way through the streets infested with yellow cabs and the sidewalks littered with hot dog...
-
Polo manufactures a product that has a price of $50.00. It has costs of $36 per unit. A competitor is introducing a new product that will sell for $42.00. Management believes it must lower the price...
-
Find the domain. g(x)=5+9x The domain is H
-
Your senior manager is currently working on a project to better understand the effects of de-dollarisation and central bank digital currencies. He indicated that your report will be shared with the...
-
As the alpha particle moves, an average force of air resistance ( acts on the alpha particle, bringing the particle to rest. Calculate the average force ( if the alpha particle travelled a distance...
-
List 3 public company from yahoo/finance names and date of their December earnings announcements. Briefly describe your selection process and introduce your portfolio companies: e.g., size, industry,...
-
Set the equation equal to zero and factor the left side. (s = 5) = 0
-
What are some of the characteristics of leaders? How are leaders different from managers? Would you rather work for a leader or a manager? Why?
-
What is the difference between the straight-line method of depreciation and the written down value method? Which method is more appropriate for reporting earnings?
-
Top Quality Fruit Company, based on Oahu, grows, processes, cans, and sells three main pineapple products: sliced, crushed, and juice. The outside skin is cut off in the Cutting Department and...
-
Make up an example showing how residual income is calculated. What information is used in computing residual income that is not used in computing ROI?
-
Rainbow Glass Company manufactures decorative glass products. The firm employs a process-costing system for its manufacturing operations. All direct materials are added at the beginning of the...
-
What is involved in vouching recorded receivables transactions to supporting documentation and to what specific account balance audit objectives does the evidence pertain?
-
State several financial ratios and their formulas that can be used by the auditor in applying analytical procedures to accounts receivable.
-
a. Under what circumstances may it not be necessary to confirm accounts receivable? b. What factors should be considered in determining the form of the confirmation request? c. When positive...
Study smarter with the SolutionInn App