Concord Corporation sells three different models of a mosquito zapper. Model A12 sells for $58 and...
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Concord Corporation sells three different models of a mosquito "zapper." Model A12 sells for $58 and has variable costs of $44. Model B22 sells for $107 and has variable costs of $81. Model C124 sells for $415 and has variable costs of $309. The sales mix of the three models is A12, 59%; B22, 30%; and C124, 11%. What is the weighted-average unit contribution margin? (Round answer to 2 decimal places, e.g. 15.50.) Weighted-Average Unit Contribution Margin A Vaughn Corporation manufactures two products with the following characteristics. Unit Contribution Margin Product 1 $45.15 Product 2 $36.00 Machine Hours Required for Production 0.15 hours 0.10 hours Product 2 If Vaughn's machine hours are limited to 2,000 per month, determine which product it should produce. Product 1 Contribution margin per unit of limited resource Vaughn Corporation should produce SA Vaughn Hospital is contemplating an investment in an automated surgical system. Its current process relies on the a number of skilled physicians. The new equipment would employ a computer robotic system operated by a technician. The company requested an analysis of the old technology versus the new technology. The accounting department has prepared the following CVP income statements for use in your analysis. Old New Sales $3,197,000 $3,197,000 Variable costs 1,587,800 682,700 Contribution margin 1,609,200 2,514,300 Fixed costs 1,162,200 1,936,300 Net income $447,000 $578,000 (a) Compute the degree of operating leverage for the company under each scenario. (Round answers to 2 decimal places, e.g. 15.72.) Degree of operating leverage Old New Concord Corporation sells three different models of a mosquito "zapper." Model A12 sells for $58 and has variable costs of $44. Model B22 sells for $107 and has variable costs of $81. Model C124 sells for $415 and has variable costs of $309. The sales mix of the three models is A12, 59%; B22, 30%; and C124, 11%. What is the weighted-average unit contribution margin? (Round answer to 2 decimal places, e.g. 15.50.) Weighted-Average Unit Contribution Margin A Vaughn Corporation manufactures two products with the following characteristics. Unit Contribution Margin Product 1 $45.15 Product 2 $36.00 Machine Hours Required for Production 0.15 hours 0.10 hours Product 2 If Vaughn's machine hours are limited to 2,000 per month, determine which product it should produce. Product 1 Contribution margin per unit of limited resource Vaughn Corporation should produce SA Vaughn Hospital is contemplating an investment in an automated surgical system. Its current process relies on the a number of skilled physicians. The new equipment would employ a computer robotic system operated by a technician. The company requested an analysis of the old technology versus the new technology. The accounting department has prepared the following CVP income statements for use in your analysis. Old New Sales $3,197,000 $3,197,000 Variable costs 1,587,800 682,700 Contribution margin 1,609,200 2,514,300 Fixed costs 1,162,200 1,936,300 Net income $447,000 $578,000 (a) Compute the degree of operating leverage for the company under each scenario. (Round answers to 2 decimal places, e.g. 15.72.) Degree of operating leverage Old New
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