Question: help due soon 1.Determining the Optimal Product Mix with One Constrained Resource Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the

help due soonhelp due soon 1.Determining the Optimal Product Mix with One Constrained Resource

1.Determining the Optimal Product Mix with One Constrained Resource Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 20 minutes of machine time. Assume that there are no other constraints. Required: 1. What is the contribution margin per hour of machine time for each type of sweatshirt? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest dollar. Contribution Margin Swoop $ Rufus $ 2. What is the optimal mix of sweatshirts? If an amount is zero, enter "0". Optimal Mix Swoop units Rufus units 3. What is the total contribution margin earned for the optimal mix? $ 2.Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 20 minutes of machine time. Assume that a maximum of 40,000 units of each sweatshirt can be sold. Required: 1. What is the contribution margin per hour of machine time for each type of sweatshirt? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest dollar. Contribution Margin Swoop $ Rufus $ 2. What is the optimal mix of sweatshirts? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest whole unit. Optimal Mix Swoop units Rufus units 3. What is the total contribution margin earned for the optimal mix? $ 3.MakeorBuy Decision Zion Manufacturing had always made its components inhouse. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $25 each. Zion uses 10,000 units of Component K2 each year. The cost per unit of this component is as follows: Assume that 75% of Zion Manufacturing's fixed overhead for Component K2 would be eliminated if that component were no longer produced. Required: 1. Conceptual Connection: If Zion decides to purchase the component from Bryce, by how much will operating income increase or decrease? $ Which alternative is better? 2. Conceptual Connection: Briefly explain how increasing or decreasing the 75% figure affects Zion's final decision to make or purchase the component. The input in the box below will not be graded, but may be reviewed and considered by your instructor. 3. Conceptual Connection: By how much would the per unit relevant fixed cost have to decrease before Zion would be indifferent (i.e., incur the same cost) between "making" versus "purchasing" the component? If necessary, round your answer to one decimal place. % Show and briefly explain your calculations. The input in the box below will not be graded, but may be reviewed and considered by your instructor. SpecialOrder Decision 4.Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per unit price of $7.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is $12 per unit. Unit cost information is as follows: If Smooth Move accepts the order, no fixed manufacturing activities will be affected because there is sufficient excess capacity. Required: 1. What are the alternatives for Smooth Move? 2. Conceptual Connection: Should Smooth Move accept the special order? By how much will profit increase or decrease if the order is accepted? $ 3. Conceptual Connection: Briefly explain the significance of the statement in the exercise that "existing sales will not be affected" (by the special sale). The input in the box below will not be graded, but may be reviewed and considered by your instructor. Special Order 5.Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per unit price of $7.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is $12 per unit. Unit cost information is as follows: Suppose a customer wants to have its company logo affixed to each paperweight using a label. Smooth Move would have to purchase a special logo labeling machine that will cost $12,000. The machine will be able to label the 15,000 units and then it will be scrapped (with no further value). No other fixed overhead activities will be incurred. In addition, each special logo requires additional direct materials of $0.20. Required: Conceptual Connection: Should Smooth Move accept the special order? By how much will profit increase or decrease if the order is accepted? $ 6. KeeporDrop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that each of the three products has a different supervisor whose position would be eliminated if the associated product were dropped. Required: Conceptual Connection: Estimate the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example, "15000" rather than "15". $ Explain why Petoskey should keep or drop Conway. The input in the box below will not be graded, but may be reviewed and considered by your instructor

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