Question: Multiple Company makes three products in a single facility. Data concerning these products follow: Product Selling price per unit Direct materials Direct labor A

Multiple Company makes three products in a single facility. Data concerning these products follow: Product Selling price per unit Direct materials Direct labor A P75.90 P29.70 P21.20 P4.90 P1.30 B P71.10 P30.20 P19.80 15.60 P3.90 1.70 1,000 C P73.40 P33.40 P19.60 P7.60 P1.80 1.30 Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit 2.10 Monthly demand in units 4,000 2,000 The mixing machines are potentially the constraint in the production facility. A total of 12,500 minutes are available per month on these machines. Assume that fixed costs total to P35,000, compute for the operating income of the company if it is able to maximize its resources.

Step by Step Solution

★★★★★

3.42 Rating (146 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Contribution per units Product A Contributions Selling pricevariable cost Contributions 75... View full answer

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!

Gloddy Company makes three products in a single facility. These products have the following unit product costs: Additional data concerning these products are listed below. The mixing machines are...

Glocker Company makes three products in a single facility. These products have the following unit product costs: Product A B C Direct materials $ 33.60 $ 50.10 $ 56.50 Direct labor $ 21.00 $ 23.60 $...

1. The quantity of organically bound nitrogen (org-N) released by acid digestion is referred to as Kjeldahl nitrogen. One method used to determine the Kjeldahl nitrogen content involves a back...

Peck Electronics produces video games in three market categories, commercial, home, and miniature. Peck has traditionally allocated overhead costs to the three products using the companywide...

Flint Engine Parts Inc. (FEP) produces three productspistons, valves, and camsfor the heavy equipment industry. FEP has a very simple production process and product line and uses a single plantwide...

Isaac Engines Inc. produces three productspistons, valves, and camsfor the heavy equipment industry. Isaac Engines has a very simple production process and product line and uses a single plantwide...

A number of terms are listed below: contribution margin cost-volume-profit analysis capital intensive operating leverage gross margin sales mix contribution margin percentage breakeven point margin...

Absorption, variable, and throughput costing EnRG Inc. produces trail mix packaged for sale in convenience stores in the Northeast section of the United States. At the beginning of April 2008, EnRG...

Stevie McQueen has run Lightning Car Detailing for the past 10 years. His static budget and actual results for June 2011 are provided next. Stevie has one employee who has been with him for all 10...

The budgets of four companies yield the following information: Requirements 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent.) 2. Which...

One of the most confusing aspects of governmental accounting is a result of the current financial resources measurement focus in governmental funds. Another challenging item is the governmental fund...

Examine various types of executive compensation plans.

1. What is the meaning and definition of banks ?

2. What is the meaning and definition of Banking?

3.What are the Importance / Role of Bank in Business?

Carl and Jenny adopt a Korean orphan. The adoption takes 2 years and two trips to Korea and his finalized in 2017. they pay $7000 in 2016 and $7500 in 2017 for qualified adoption expenses. In 2017 ,...

Organizations are increasing their use of personality tests to screen job applicants. What are some of the advantages and disadvantages of this approach? What can managers do to avoid some of the...

Mary Walker, president of Rusco Products, considers $14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at...

Maria Lorenzi owns an ice cream stand that she operates during the summer months in West Yellowstone, Montana. Her store caters primarily to tourists passing through town on their way to Yellowstone...

Scribners Corporation produces fine papers in three production departmentsPulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically...

Because of bad weather, the number of days next week that the captain of a charter fishing boat can leave port is uncertain. Let x = number of days that the boat is able to leave port per week. The...

The mean number of errors per page made by a member of the word-processing pool for a large company is thought to be 1.5, with the number of errors distributed according to a Poisson distribution. If...

The Employee Benefit Research Institute reports that 69% of workers reported that they and/or their spouse had saved some money for retirement. a. If a random sample of 30 workers is taken, what is...