Question: Small Stool Selling price per unit: 120 Variable Cost per unit: 48 Amount of material used to produce a unit in grams: 200 Market Capacity:

Small Stool

Selling price per unit: 120

Variable Cost per unit: 48

Amount of material used to produce a unit in grams: 200

Market Capacity: 8,400

Large Stool

Selling price per unit: 260

Variable Cost per unit: 117

Amount of material used to produce a unit in grams: 400

Market Capacity: 5,400

1. What is the contribution margin per gram of material for the small stool?

2. What is the contribution margin per gram of material for the large stool?

3. Can we fulfill the market capacity for the privileged stool?

4. Recommendation to produce the following number of units to maximize profitability with the given limited resource for a small stool:

5. Recommendation to produce the following number of units to maximize profitability with the given limited resource for a large stool:

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 Accounting Questions!

Q:

On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit...

Q:

Please answer the attached file. Thanks in advance. Pedro Company provides the following information about its product: Targeted operating income $50,000 Selling price per unit 6.00 Variable cost per...

Q:

Please help me with the following questions. you are required to submit supporting calculations on all questions that require calculations. Some questions do not require calculations. If a question...

Q:

Taking on a responsibility you know can be better completed by someone else would violate the ethical conduct standard of: competency. confidentiality. credibility. integrity. Question 2 Which term...

Q:

Mendez Company provides the following information about its product: Targeted operating income $50,000 Selling price per unit 6.00 Variable cost per unit 1.50 Total fixed costs 125,000 What is the...

Q:

Mendez Company provides the following information about its product: Targeted operating income $50,000 Selling price per unit 6.00 Variable cost per unit 1.50 Total fixed costs 125,000 What is the...

Q:

Accouting exam will be due friday August 7th 2016 during the day at 7pm EST Question 1 (2.5 points) 1 Mendez Company provides the following information about its product: Targeted operating income...

Q:

The following data hastened for the low Menit SO 2.000 3. 300 3020 April 400 3 May 40 bruary Manti The variable per hours ASUS 1864 CS 41 Am Company has the following information available Selling...

Q:

Please answer the below question. Must show work. Mendez Company provides the following information about its product: Targeted operating income $50,000 Selling price per unit 6.00 Variable cost per...

Q:

Please answer the below question. Must show work. Mendez Company provides the following information about its product: Targeted operating income $50,000 Selling price per unit 6.00 Variable cost per...

Q:

Robin Companys A Division produces a small component used by other companies as a key part in their products. Cost and sales data relating to the component are given below: Selling price per unit $50...

Q:

Winter Consulting prepared the following adjusted trial balance at December 31, 2015, the end of the current fiscal year. Instructions 1. Prepare an income statement for the year ended December 31....

Q:

MacFarlane Inc. Balance Sheets as of December 31 2017 2016 Cash $465,000 $225,000 427,500 150,000 Accounts receivable 407,500 Inventory 211,000 Prepaid insurance Plant and equipment 25,000 36,000...

Q:

6. What will the code in Review Question 5s answer a assign to the dblAvg variable? a. 0 b. 5 c. 6 d. 8

Q:

Caprice is a single 42-year-old with income of $12,000 in 2015. She lacked minimum essential coverage for 7 months in 2015. What is her individual shared responsibility payment amount? $27.08 $190.00...

Q:

A poultry farmer is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the eggs he wants to sell. The fixed costs for the Buffs would be $7500 and the variable costs per egg...

Q:

Bob and Carol file their tax returns using the married filing jointly status. Their AGI is $132,500. They have two children, ages 11 and 7. How much child tax credit can Bob and Carol claim for their...

Q:

(b) An electric circuit is simply an interconnection of the elements. Consider the original circuit as shown in Figure Q1(b), compute the value of I. (4 Marks) 12 V 15 A I. 3A 20 V 20 V 8 V Figure...

Q:

Suppose we want to choose 3 colors, without replacement, from the 4 colors red, blue, green, and purple. (If necessary, consult a list of formulas.) How many ways can this be done, if the order of...

Q:

1. Buying groceries at the supermarket. 2. Selling a house 3. Getting married out of community of property. 4. Starting a new cellphone contract. 5. Arranging monthly instalments to pay for the car...

Q:

6. Give an example of how the liking principle can be used to influence others.

Q:

5. Give an example of how the consensus principle can be used to influence others.

Q:

9. Give an example of how the word because can trigger a cognitive reflex in another party.