Cress Company makes four products in a single facility. Data concerning these products appear below: Products...
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Cress Company makes four products in a single facility. Data concerning these products appear below: Products Selling price per unit. Variable manufacturing cost per unit. Variable selling cost per unit.. Milling machine minutes per unit.. Monthly demand in units. A $33.90 $13.30 $1.20 2.60 2,000 O $0.00 B C $24.80 $26.10 $7.10 $9.40 $2.50 $1.30 0.80 2,000 1.40 2,000 The milling machines are potentially the constraint in the production facility. A total of 11,500 minutes are available per month on these machines. Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.) $7.46 $15.20 $19.40 D $29.80 $9.70 $2.30 0.80 3,000 QUESTION 2 In a sell or process further decision, which of the following costs are relevant? 1. A variable production cost incurred prior to the split-off point. II. An avoidable fixed production cost incurred after the split-off point. Only I. Only II. Both I and II. Neither I nor II. Cress Company makes four products in a single facility. Data concerning these products appear below: Products Selling price per unit. Variable manufacturing cost per unit. Variable selling cost per unit.. Milling machine minutes per unit.. Monthly demand in units. A $33.90 $13.30 $1.20 2.60 2,000 O $0.00 B C $24.80 $26.10 $7.10 $9.40 $2.50 $1.30 0.80 2,000 1.40 2,000 The milling machines are potentially the constraint in the production facility. A total of 11,500 minutes are available per month on these machines. Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.) $7.46 $15.20 $19.40 D $29.80 $9.70 $2.30 0.80 3,000 QUESTION 2 In a sell or process further decision, which of the following costs are relevant? 1. A variable production cost incurred prior to the split-off point. II. An avoidable fixed production cost incurred after the split-off point. Only I. Only II. Both I and II. Neither I nor II.
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Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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