Question: slove it plz 0 3 @ WEBCAM RECORD Remaining Time: 1 hour, 59 minutes, 34 seconds Question Completion Status 1 2 4 uestion 2 10
0 3 @ WEBCAM RECORD Remaining Time: 1 hour, 59 minutes, 34 seconds Question Completion Status 1 2 4 uestion 2 10 points SA Bahrain Rubber Company (BRC) Manufactures a line of speed limps. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company provided the following data: Product Small bumps size Medium bumps size Large bumps sure Demand next year (units) 50.000 35,000 325,000 Selling price S16,70 $26.60 59.60 Direct materials S4.30 $6.44 $3.20 Direct labor $6.40 SI1.20 $3.20 Direct labor hours per unit 0.40 0.70 0.2 The following additional information is available a. The company's plant has a capacity 99,000 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all three products. b. The direct labor rate of S16 per hon is expected to remain unchanged during the coming year. c. Fixed cost total $520,000 per year. Variable overhead costs are $2 per direct labor-bour. d. All the company's nonmanufacturing costs are fixed. Required 1. How much variable overhead cost is incurred to manufacture one unit of each of the company's three products? 2. Assuming that direct labor-bours is the company's constraining resource, what is the contribution margin per direct labor-bour for each of the company's three products? Rank them in terms of profitability? 3. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable use of the constrained resource in either case? For the toolbar, press ALT:F10(PC) or ALT.FN+F10 Mac), B 1 VS Paragraph 10pt I. XO O Q Artal ili 111
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