None Wildhorse Corporation manufactures two products with the following characteristics.Unit ContributionMarginMachine HoursRequired for ProductionProduct 1$630.15 hoursProduct 2$500.10 hoursIf Wildhorse's machine hours are limited to 2,000 per month, determine which product it should produce.Product 1Contribution margin per unit of limited resource$Wildhorse Corporation should produce$Product 2

CalculationProduct 1Contribution margin per machine hours = contribution margin divide machine hours…

Answered: Wildhorse Corporation manufactures two…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter20: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CMA: Eagle Brand Inc. produces two products as follows: Eagle Brand has 1,000 lbs. of raw materials that...

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Similar questions

Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.
Eagle Brand Inc. produces two products as follows: Eagle Brand has 1,000 lbs. of raw materials that can be used to produce Products X and Y. Which of the following alternatives should Eagle Brand accept to maximize the contribution margin? a. 100 units of Product Y. b. 250 units of Product X. c. 200 units of Product X and 20 units of Product Y. d. 200 units of Product X and 50 units of Product Y.
Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).
Sage Corporation manufactures two products with the following characteristics. Unit Contribution Machine Hours Margin Required for Production Product 1 $44.25 0.15 hours Product 2 $35.50 0.10 hours If Sage's machine hours are limited to 2,000 per month, determine which product it should produce. Product 1 Product 2 $ Contribution margin per unit of limited resource Sage Corporation should produce
Sage Corporation manufactures two products with the following characteristics. Unit Contribution Machine Hours Margin Required for Production Product 1 $46.80 0.15 hours Product 2 $36.10 0.10 hours If Sage's machine hours are limited to 2,000 per month, determine which product it should produce. Product 1 Product 2 295 $ 370 Contribution margin per unit of limited resource Sage Corporation should produce Product 2 %24
Sage Corporation manufactures two products with the following characteristics. Product 1 Product 2 Unit Contribution Margin $47.25 $36.70 Machine Hours Required for Production Contribution margin per unit of limited resource Sage Corporation should produce. 0,15 hours If Sage's machine hours are limited to 2,000 per month, determine which product it should produce. 0.10 hours $ Product 11 Product 2
Vaughn Manufacturing's contribution margin is $20 per unit for Product A and $35 for Product B. Product A requires 2 machine hours and Product B requires4 machine hours. How much is the contribution margin per unit of limited resource for each product? A B $6.67 $10.00 $8.75 $30.00 $6.67 $30.00 $8.75 $10.00
Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit Machine minutes needed per unit $120 10 minutes $112 8 minutes A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? Multiple Choice $840,000 $780,000 $720,000
Concord Corporation’s contribution margin is $22.50 per unit for Product A and $35 for Product B. Product A requires 2 machine hours and Product B requires 4 machine hours. How much is the contribution margin per unit of limited resource for each product? A B $25.00 $7.50 $11.25 $8.75 $25.00 $8.75 $11.25 $7.50
Mars Company manufactures and sells three products. Relevant per unit data concerning each product are given below: Product A B C Selling price $8 $12 $18 Variable costs and expenses $5 $10 $15 Machine hours to produce 2 1 2 Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.25.) Product A Product B Product C Contribution margin per unit of limited resource $ $ $ Assuming 3,000 additional machine hours are available, which product should be manufactured? What is the total contribution margin if the hours are (1) divided equally amoung the products and (2) if they are allocated entirely to the product identified above. Total contribution margin (1) Divided equally amoung the…
Edge Company produces two models of its product with the same machine. The machine has a capacity of 172 hours per month. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Required: Contribution margin per unit 1. Determine the contribution margin per machine hour for each model Product Cootribution Margin Standard $ 230 100 $130 Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 hour 650 units Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin $ 260 156 $ 104 2 hours 250 units Standard Contribution margin per machine hour 2 How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Total…
Helena Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $45.00 $54.00 Variable costs $29.80 $30.20 Machine hours 0.40 0.70 Calculate total contribution margin if the additional 1,050 hours are:(1) Divided equally between the products. Basic Deluxe Total Contribution margin $ $ $ (2) Allocated entirely to the product identified above. Basic Deluxe Total Contribution margin $ $ $

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