Don't provide answers in image format Rosie's Company has three products, P1, P2, and P3. The maximum Rosie's can sell is 67,000 units of P1, 26,000 units of P2, and 14,000 units of P3,Rosie's has limited production capacity of 188,000 machine hours. Machine hours per unit are as follows: P1, 1 hour; P2, 2 hours; P3, 4 hours.Contribution margin per unit is $5 for P1, $15 for P2, and $25 for P3. What is the most profitable sales mix for Rosie's Company?Multiple Choice80,000 P1, 26,000 P2, 14,000 P3.18,200 P1, 90,000 P2. 80,000 P3.12.600 P1, 26,000 P2, 80.000 P3.12,600 P1, 27,000 P2, 12,600 P380,000 P1, 90,000 P2. 80,000 P3

When there are multiple products but only one key factor:-Step 1:- Rank the product on the basis of…

Answered: Rosie's Company has three products, P1,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 12EB: Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes...

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Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Rosie's Company has three products, P1, P2, and P3. The maximum Rosie's can sell is 85,000 units of P1, 84,000 units of P2, and 72.000 units of P3. Rosie's has limited production capacity of 69,000 hours, It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie's Company? Multiple Choice 372.000 P1, 84,000 P2, 72,000 P3 64,800 P1, 84,000 P2, 372.000 P3. 372,000 P1, 80,000 P2, 372.0000 P3. 58,800 P1, B0,000 P2, 72.000 P3. 64,800 P1, 85,000 P2, 64,800 P3.
Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 724,000 units of Basic, 492,000 units of Classic, and 124,500 units of Deluxe. Bricktan has limited production capacity of 1,008.000 machine hours. Machine hours per unit are as follows: Basic, 1 hour, Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the most profitable sales mix for Bricktan Incorporated? Multiple Choice 622,500 Basic, O Classic and 124,500 Deluxe. 72,400 Basic, 492,000 Classic and 268,800 Deluxe. 81,750 Basic, 492,000 Classic and 124,500 Deluxe. 168,000 Basic, 124,500 Classic and 268,800 Deluxe. 367,500 Basic, 268,800 Classic and 124,500 Deluxe.
Rosie's Company has three products, P1, P2, and P3. The maximum Rosle's can sell is 66,700 units of P1, 25700 units of P2, and 1370o units of P3.Ronie capacity of 176,000 machine hours. Machine hours per unit are as follows: P1, 1 hour, P2, 2 hours, P3,4 hours. Contribuion margin per unit is 5 tor P. is the most profitable sales mix for Rosie's Company? Multiple Choice 69,800 P1, 25,700 P2, 13,700 P3. 12,330 P1, 26,700 P2, 12,330 P3. 69,800 P1, 79,500 P2, 69,800 P3. 12,330 P1, 25,700 P2, 69,800 P3. 17,990 P1, 79,500 P2, 69,800 P3.
AMA Corporation has two products, x and y. The profit contribution of x is P50 per unit and the profit contribution of y is P25 per unit. The company has three machine centers that are available for 20, 24, and 18 hours respectively. Product x needs 1 hour in machine center 1, 3 hours in machine center 2, and 3 hours in machine center 3. Product y needs 2, 2, and 1 hour in machine centers 1, 2, and 3 respectively. The company can sell all it can produce. Find the number of units of x and y to produce to maximize the profit contribution
A company produces two products, Gamma and Omega. Gamma sells for $10 per unit and Omega sells for $12.50 per unit. Variable costs are $7 per unit of Gamma and $8 per unit of Omega. The company has a capacity of 5,000 machine hours per month. Gamma uses 1 machine hour per unit and Omega uses 3 machine hours per unit.

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