Question: part 1 and 2 four questions total Variable costs are listed as variable manufacturing and unit costs are listed under the unit selling price. For

part 1 and 2 four questions total

Variable costs are listed as variable manufacturing and unit costs are listed under the unit selling price. For part 2 unit costs are 32$ with a selling price of 72$. No other variable costs for this part. part 1 and 2 four questions total Variable costs are listed as

Answers provided by the teacher but I don't think they are correct when trying to work it out:

variable manufacturing and unit costs are listed under the unit selling price.

Part 1 A. Sax Ventures produces three different products. Information about these products can be found below. Required: 1. If considerable market demand exists for all products, which product would be most profitable to produce? 2. If there is only a limited demand for each product as shown below, how many of each product should be produced per week using the short-run profit maximizing strategy? Part 2 The Mayfield Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: Each cabinet sells for $72 and has direct material costs of $32 incurred at the start of the machining operation. Mayfield has no other variable costs. Mayfield can sell whatever output it produces. The following requirements refer only to the preceding data. There is no connection between the requirements. Required: 1. An outside contractor makes the following offer: if Mayfield will supply them with 12,000 machined units, they will finish them at $10 per unit, double the $5 per unit that it costs Mayfield to do the finishing in-house. Should Mayfield accept the subcontractor's offer? Explain/defend your answer, showing supporting calculations. 2. The Hunt Corporation offers to machine 4,000 units at $4 per unit, half the $8 per unit that it costs Mayfield to do the machining in-house. Should Mayfield accept Hunt's offer? Explain/defend your answer, showing supporting calculations. 2) machining is not the bottleneck. Only increasing cost

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 General Management Questions!