Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per Unit Fixed Cost per Unit DL Hours per Unit A $ 4.00 $ 1.00 $ 2.00 2 B $ 3.50 $ 0.50 $ 2.00 2 C $ 6.00 $ 2.00 $ 3.00 3 The objective function for a linear program to maximize contribution margin from the set of three products is: Multiple Choice Z = $3A + $2.50B + $5C. Z = A + B + C. Z = A + $0.50B + $2C. Z = $3A + $3B + $4C. Z = $4A + $3.50B + $6C.
Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per Unit Fixed Cost per Unit DL Hours per Unit A $ 4.00 $ 1.00 $ 2.00 2 B $ 3.50 $ 0.50 $ 2.00 2 C $ 6.00 $ 2.00 $ 3.00 3 The objective function for a linear program to maximize contribution margin from the set of three products is: Multiple Choice Z = $3A + $2.50B + $5C. Z = A + B + C. Z = A + $0.50B + $2C. Z = $3A + $3B + $4C. Z = $4A + $3.50B + $6C.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 4E: Using the data in E4-2 and spreadsheet software, determine:
The variable cost per unit, the total...
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Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows:
Product | Selling Price per Unit | Variable Cost per Unit | Fixed Cost per Unit |
DL Hours per Unit |
|||||||
A | $ | 4.00 | $ | 1.00 | $ | 2.00 | 2 | ||||
B | $ | 3.50 | $ | 0.50 | $ | 2.00 | 2 | ||||
C | $ | 6.00 | $ | 2.00 | $ | 3.00 | 3 | ||||
The objective function for a linear program to maximize contribution margin from the set of three products is:
Multiple Choice
-
Z = $3A + $2.50B + $5C.
-
Z = A + B + C.
-
Z = A + $0.50B + $2C.
-
Z = $3A + $3B + $4C.
-
Z = $4A + $3.50B + $6C.
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