Magic Products Limited makes three products, each requiring two machine hours per unit to produce. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Magic Products Limited makes three products, each requiring two machine hours per unit to produce. The company has maximum machine hour of 40,000 hours. The following information has been provided by the Sales Department in relation to each product: Budgeted sales units Selling price per unit Variable costs per unit Marco 10,000 $12 $6 Mezzo 7,500 $16 $7 Micro 5,000 $18 $4 Required (a) Identify liming factor. (b) Calculate the contribution margin of each product. (c) Calculate contribution of each product and rank the product for production. (d) How should the company arrange its products for manufacture in order to maximize profitability? Magic Products Limited makes three products, each requiring two machine hours per unit to produce. The company has maximum machine hour of 40,000 hours. The following information has been provided by the Sales Department in relation to each product: Budgeted sales units Selling price per unit Variable costs per unit Marco 10,000 $12 $6 Mezzo 7,500 $16 $7 Micro 5,000 $18 $4 Required (a) Identify liming factor. (b) Calculate the contribution margin of each product. (c) Calculate contribution of each product and rank the product for production. (d) How should the company arrange its products for manufacture in order to maximize profitability?
Expert Answer:
Answer rating: 100% (QA)
a Identify the Limiting Factor The limiting factor is the constraint that restricts the company from ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
LLJ Satellites: Variance Analysis and Budgeting Jack Childs is nervous about his company's future performance. The Childs family own 40% of the shares of LLJ Satellites, and generally has control...
-
PT. Sultan Food sells food and variety snacks and cake. The company has one restaurant location and serves catering orders for offices. So far, all dishes are made by themselves using family recipes...
-
Flosun plc makes and sells a range of products. Management has carried out an analysis of the total cost of production. The information in Appendix 3.1 reflects this analysis of budgeted costs for...
-
What is the timestep value ? And how do I go about altering from downstream to upstream? The following code solves the advection equation 1 2 3 4 5 6 7 8 9- 10 - 11 12 - 13 - 14 - 15 - 16 - 17 18 19...
-
One of the classic features of the global financial crisis was the failure of high-profile investment banks and financial firms such as Lehman Brothers, Bear Stearns, and AIG. These firms experienced...
-
When heated, tetrafluoroethylene dimerizes to form octafluorocyclobutane. To determine the rate of this reaction at 488 K, the data in the table were collected. Analysis was done graphically, as...
-
If possible, add the following irrational numbers without using a calculator. If this is not possible, state why. \(35 \pi+17 \pi\)
-
A company is trying to determine how to allocate its $145,000 advertising budget for a new product. The company is considering newspaper ads and television commercials as its primary means for...
-
For each of the following major business activities of the purchasing and payments processes, describe two controls that help mitigate the risk of error or fraud. 1. Managing inventory 2. Purchasin...
-
You are employed by FishWrap Ltd., a local newspaper distribution company, and are attempting to determine the average level of customer satisfaction with the newspapers delivery service. All...
-
DannyImasuen is a 37 years old working in Quebec. His wages for thecurrent weekly pay period total $580.The employer pays $22 for lifeinsurance premiums and $190 for group medical premiums per mont...
-
What is the standard deviation of an investment that has the following expected scenario? Probability of Expected Occurrence Return Recession 22% 2.0% Moderate Economy 61% 9.5% Strong Economy 17%...
-
a)Determine the total resistance in the circuit and the current in resistor R3 when no meter is connected to the circuit. b) Calculate the same when a voltmeter with an internal resistance of 10 kohm...
-
Develop a forecast for both unemployment rates for June (Boston) and July (United States) 2021.You must test at least three different forecasting methods (no more than two iterations of a same method...
-
5.Juwan and Timi Clarke are planning for retirement. Juwan has a number of retirement related questions he needs help answering. Use your retirement planning knowledge to address the following...
-
Write a Python code WITHOUT USING NUMPY to generate a random matrix A of size m x n with m>n and calculate its Frobenius norm, II IIF. The entries of A must be of the form r.dddd (example 5.4316)....
-
Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so...
-
You are standing on the top of a building and throw a ball vertically upward. After 2 seconds, the ball passes you on the way down, and 2 seconds after that, it hits the ground below. a. What is the...
-
The Ruddle Co. Ltd had planned to install and, with effect from next April, commence operating sophisticated machinery for the production of a new product - product Zed. However, the supplier of the...
-
(a) The total costs incurred at various output levels, for a process operation in a factory, have been measured as follows: Output (units) Total cost () 11 500 ............ 102 476 12 000...
-
A product is manufactured by passing through three processes: A, B and C. In process C a by- product is also produced which is then transferred to process D where it is completed. For the first week...
-
In 2013, Verizon Communications Inc. owned 55 percent of Verizon Wireless, and the noncontrolling interest reported in Verizons financial statements is Vodafone Group Plcs 45 percent interest in...
-
Suzlon, a subsidiary of Patni, provides services to Patni. During 2016, Suzlon charged \($3,000,000\) for services provided to Patni. Cost of the services provided was \($2,100,000.\) How should the...
-
A parent makes an interest-bearing loan to its 90%-owned subsidiary in 2016, which is still outstanding in 2017. The eliminating entries (I) on the consolidation working paper for 2017, related to...
Study smarter with the SolutionInn App