Data concerning four product lines being sold by Lunatic Company are shown below: Selling Price Unit...

 

Transcribed Image Text:

Data concerning four product lines being sold by Lunatic Company are shown below: Selling Price Unit Variable Costs Production time (hours) Market Limit (units) Dee 20 15 2 5,000 Total fixed costs, P30,000 Total hours available, 22,500 hours Vee 30 24 2 4,000 Sor 22 18 1 3,000 Yah 15 7 4. What is the net profit using you answer in number 1? 4 8,000 3. To maximize profits, how many units of each product must be sold? Bokree Company is buying 10,000 units of a certain part at P15 per unit. This part is used in the production of its main product. Freight and handling costs are P1,200. The company has the facilities and the technical know how to make the part. The following are the estimated costs to make the part: Raw Materials Wages of the factory workers Variable Overhead Fixed Overhead P22,500 54,500 46,000 66,000 P3.50 per unit of the fixed overhead applied to the product is merely allocated. There is an offer from a third party to rent the space used in making the part for P18,500 a year. 1. What the decision to be made? 2. what is the economic advantage of the decision to be made? Data concerning four product lines being sold by Lunatic Company are shown below: Selling Price Unit Variable Costs Production time (hours) Market Limit (units) Dee 20 15 2 5,000 Total fixed costs, P30,000 Total hours available, 22,500 hours Vee 30 24 2 4,000 Sor 22 18 1 3,000 Yah 15 7 4. What is the net profit using you answer in number 1? 4 8,000 3. To maximize profits, how many units of each product must be sold? Bokree Company is buying 10,000 units of a certain part at P15 per unit. This part is used in the production of its main product. Freight and handling costs are P1,200. The company has the facilities and the technical know how to make the part. The following are the estimated costs to make the part: Raw Materials Wages of the factory workers Variable Overhead Fixed Overhead P22,500 54,500 46,000 66,000 P3.50 per unit of the fixed overhead applied to the product is merely allocated. There is an offer from a third party to rent the space used in making the part for P18,500 a year. 1. What the decision to be made? 2. what is the economic advantage of the decision to be made?

Answer rating: 100% (QA)

1 Maximize profits we can use the concept of linear ... View the full answer