Question 1 ACME Widgets produces three products: widgets A, B, and C. The following information is...
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Question 1 ACME Widgets produces three products: widgets A, B, and C. The following information is available for each product: Product A B C Selling price per unit $10.00 $15.00 $20.00 Direct material cost per unit $2.00 $3.00 $4.00 Production time per unit on the bottleneck machine 4 hours 3 hours Question 3: Breakeven Point Analysis 2 hours The company has 1,200 hours of capacity available on the bottleneck machine each month. The company's management team wants to determine the most profitable mix of products to produce. Fixed operating costs are equal to $3,000. ACME Widgets utilizes throughput accounting principles. Maximum demand for products is: A-250 units, B-200 units, C-150 units. Question 1: Contribution Margin Analysis Question: Which product has the highest contribution margin per unit, and what is its value? a. Product A - $6.00 b. Product C-$16.00 c. Product C-$12.00 d. Product B - $10.00 Question 2: Optimal Product Mix Question: What is the optimal production mix to maximize total throughput, considering the de constraints? a. Produce 200 units of A, 150 units of B, and 150 units of C. b. Produce 250 units of A, 100 units of B, and 100 units of C. c. Produce 75 units of A, 200 units of B, and 150 units of C. d. Produce 100 units of A, 250 units of B, and 150 units of C. Question 1 ACME Widgets produces three products: widgets A, B, and C. The following information is available for each product: Product A B C Selling price per unit $10.00 $15.00 $20.00 Direct material cost per unit $2.00 $3.00 $4.00 Production time per unit on the bottleneck machine 4 hours 3 hours Question 3: Breakeven Point Analysis 2 hours The company has 1,200 hours of capacity available on the bottleneck machine each month. The company's management team wants to determine the most profitable mix of products to produce. Fixed operating costs are equal to $3,000. ACME Widgets utilizes throughput accounting principles. Maximum demand for products is: A-250 units, B-200 units, C-150 units. Question 1: Contribution Margin Analysis Question: Which product has the highest contribution margin per unit, and what is its value? a. Product A - $6.00 b. Product C-$16.00 c. Product C-$12.00 d. Product B - $10.00 Question 2: Optimal Product Mix Question: What is the optimal production mix to maximize total throughput, considering the de constraints? a. Produce 200 units of A, 150 units of B, and 150 units of C. b. Produce 250 units of A, 100 units of B, and 100 units of C. c. Produce 75 units of A, 200 units of B, and 150 units of C. d. Produce 100 units of A, 250 units of B, and 150 units of C.
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