Question: 11:22 PM Thu 2 Dec 24% Done ACCT 2017 Long Company and Taylor Company Question Theory of Constr... 24-11 Long Company makes three types of

 11:22 PM Thu 2 Dec 24% Done ACCT 2017 Long Company

11:22 PM Thu 2 Dec 24% Done ACCT 2017 Long Company and Taylor Company Question Theory of Constr... 24-11 Long Company makes three types of plastic garbage containers. Each of the three types of cans requires the use of a special machine that has total operating capacity of 204,000 hours per year. Information on each of the three products is as follows: Basic Standard Deluxe Selling price $12.00 $17.00 $27.00 Unit variable cost $6.00 $8.00 $12. 00 Machine hours required 75 0.15 0.25 0. The marketing manager has determined that the company can sell all that it can produce of each of the three products. Required: (1) How many of each product should be sold to maximize total contribution margin? What is the total contribution margin for this product mix? (2) Suppose that Long Company can sell no more than 800,000 units of each type at the prices indicated. What product mix would we recommend and what would be the total contribution margin? 24-15 Taylor Company produces two industrial cleaners that use the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!