Dynondo's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. Thefollowing per unit data apply:Model X Model Y$56$69661341500Selling priceDirect materialsDirect labor ($13 per hour)Variable support costs ($4 per machine-hour)Fixed support costs13815Model Z$71626815Which model has the greatest contribution margin per unit?Model XModel YModel ZBoth Model X and Model Y have the highest and same contribution margin per unit

MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…

Dynondo's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Selling price Direct materials 0000 Model X Model Y $69 6 13 8 $56 6 Direct labor ($13 per hour) 13 Variable support costs ($4 per machine-hour) 4 Fixed support costs 15 15 Model Z $71 6 26 8 15 Which model has the greatest contribution margin per unit? Model X Model Y Model Z Both Model X and Model Y have the highest and same contribution margin per unit

Dynondo's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Selling price Direct materials 0000 Model X Model Y $69 6 13 8 $56 6 Direct labor ($13 per hour) 13 Variable support costs ($4 per machine-hour) 4 Fixed support costs 15 15 Model Z $71 6 26 8 15 Which model has the greatest contribution margin per unit? Model X Model Y Model Z Both Model X and Model Y have the highest and same contribution margin per unit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

See similar textbooks

Similar questions

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.
Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Selling price direct materials cost per unit direct labor ($12/labor hour) variable support costs ($4/ machine hour) fixed support costs ($10/machine hour) Model X $57 $11 1 labor hour required $12 per unit 1 machine hour required $4 per unit 1 machine hour required $10 per unit Model Y $60 $6 1 labor hour required $12 per unit 2 machines hour required $8 per unit 2 machine hours required $20 per unit Model Z $70 $9 2 labor hours required $24 per unit 2 machines hour required $8 per unit 2 machine hours required $20 per unit What is the contribution margin per machine hour of the product that should be produced when there is a limited number of machine hours available?
Paul's Pumps manufactures three different product lines: Model A, Model B, and Model C. Plenty of market demand exists for all models.The table below reports the prices and costs per unit of each product. Model A Model B Model C Selling price $50 $60 $70 Direct materials costs $6 $6 $ 6 Direct labor costs ($12 per labor hour) $12 $12 $24 Variable support costs ($4 per machine hour) $4 $8 $8 Fixed support costs $10 $10 $10 Assuming that machine hours are limited (i.e., this is the constrained resource), which model is the most profitable to produce? Select one: a. Model B X b. Model A and B would be equally profitable c. Model A d. Model C
Answer the following questions using the information below: Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z Selling price $50 $60 $70 Direct materials 6 6 6 Direct labor ($12 per hour) 12 12 24 Variable support costs ($4 per machine-hour) 4 88 Fixed support costs 10 10 10 If there is a machine breakdown, which model is the most profitable to produce? Model X Model Y Model Z Models Y and Z
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $86,500. Required: $ 76,600 41,400 $ 46,000 5,000 $ 123,400 52,800 $ 91,000 5,000 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. 4. Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer…
Joe's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: M.X M.Y M.Z Selling price $50 $60 $70 Direct materials $6 $6 $6 Direct labor ($12 per hour) $12 $12 $24 Variable support costs ($4 per machine-hour) $4 $8 $8 Fixed support costs $10 $10 $10 Which model has the greatest contribution margin per unit?
Hitec industries produces three products with the following costs and selling prices: Product Y Selling price per unit P40 P30 P35 Variable costs per unit 24 18 20 Contribution margin per unit 18 14 15 Direct labor hours per unit 3 Machine hours per unit 7 4 If Hitec has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the three products should be produced in which order? Y. Z, X X, Y, Z X, Z, Y Z, X, Y 2.
Marten Corp.has a limited number of machine hours available to produce its three products A11, B22, and C33. Determine the order that these products should be produced given the following data: A11 B22 C33 $14 $36 $10 Unit sales price 6 32 Unit variable costs 2 5 4 Machine hours per unit А11, С33, В22 О А11, В22, С33 B22, C33, A11 е с, А11, В22 h
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: Product Sales Priceper Unit Variable Costper Unit Model 101 $275 $185 Model 201 355 220 Model 301 405 240 The current product mix is 4:3:2. The three models share total fixed costs of $328,500. A. Calculate the sales price per composite unit. Sales price $fill in the blank 363349fb9022017_1 per composite unit B. What is the contribution margin per composite unit? Contribution margin $fill in the blank 363349fb9022017_2 per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars $fill in the blank 363349fb9022017_3 Break-even point in units fill in the blank 363349fb9022017_4 units D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".…