Don't use AI. Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round.Because of the size of Anne's creations, only one pot can be fired in the kiln at a time. Information about each model follows:Sales priceVariable costFiring timeSquare$ 78$ 232.5 hoursRound$ 102$ 393.5 hoursAssume Anne can sell as many pots as she can create but is limited as to the number of hours that the kiln can be run.Required:1. Compute the contribution margin per unit and contribution margin per hour of firing time.Square CeramicPotRoundCeramic PotContribution Margin per UnitContribution Margin per Hour2. Which type of pot should Anne produce to maximize her short-term profit?Which type of pot should Anne produce

Explanation for 1: The formula to calculate contribution margin per unit is = Sales price per unit -…

Answered: Anne Sugar makes large ceramic pots for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1TP: Seda Sarkisian makes wedding cakes from her home. A customer has requested two duplicate wedding...

See similar textbooks

Similar questions

Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round. Because of the size of Anne’s creations, only one pot can be fired in the kiln at a time. Information about each model follows: Square Round Sales price $74 $96 Variable cost $29 $40 Firing time 2.5 hours 3.5 hours Assume that Anne can sell as many pots as she can create but that she is limited as to the number of hours that the kiln can be run.Compute the contribution margin per unit and contribution margin per hour of firing time. Square Ceramic Pot Round Ceramic Pot Contribution Margin per Unit Contribution Margin per Hour Which type of pot should Anne produce to maximize her short-term profit? Square Ceramic Pot Round Ceramic Pot Both
Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round. Because of the size of Anne's creations, only one pot can be fired in the kiln at a time. Information about each model follows: Sales price Variable cost Firing time Round $ 130 $ 46 3.5 hours Assume Anne can sell as many pots as she can create but is limited as to the number of hours that the kiln can be run. Square $ 98 $ 28 Contribution Margin per Unit Contribution Margin per Hour 2.5 hours Required: 1. Compute the contribution margin per unit and contribution margin per hour of firing time. Square Ceramic Pot Round Ceramic Pot 2. Which type of pot should Anne produce to maximize her short-term profit? Which type of pot should Anne produce
Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round. Because of the size of Anne’s creations, only one pot can be fired in the kiln at a time. Information about each model follows: Square Round Sales price $71 157 Variable cost $21 101 Firing time 2.5 hrs 3.5 hrs Assume that Anne can sell as many pots as she can create but that she is limited as to the number of hours that the kiln can be run.Compute the contribution margin per unit and contribution margin per hour of firing time. Which type of pot should Anne produce to maximize her short-term profit? Square Ceramic Pot Round Ceramic Pot Both
please answer do not image.
how would i find the contribution margins for the two pots
how would i find the maximum contribution margin?
Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the production of the boxed lunches. The costs to make the cookies are: A potential supplier has offered to sell Country Diner the cookies for $0.85 each. If the cookies are purchased, 10% of the fixed overhead could be avoided. If Jason accepts the offer, what will the effect on profit be?
Seda Sarkisian makes wedding cakes from her home. A customer has requested two duplicate wedding cakes: one for the wedding and one to be frozen for their anniversary. The couple has offered $400 for both cakes instead of $500 ($250 each). The cost information to make one cake is shown. A. What is the cost for the first cake? B. What cost would not be included in the second cake? C. What is the cost of the second cake? D. What would be the total cost of this order if the offer was accepted? E. How much profit will Seda be recording for this special order? F. If your company policy is to always have a 15% profit on all order, would you still accept this order? G. If you would not accept the order, what price would you negotiate?
Olivia sells bookshelves and small tables. It takes 1.25 hours to build a bookshelf and .9 hours to build a small table. The bookshelves have a unit contribution margin of $500 and the small tables have a unit contribution margin of $350. Olivia has been running low on time to build more products. What is her contribution margin per unit of time for the bookshelves? A : $625 B : $400 C : $555 D : $395
José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $245 each. José believes he can produce a birdhouse for a total cost of $200 per unit, and he plans a 25% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price E per unit Required A Required B >
José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $275 each. Jose believes he can produce a birdhouse for a total cost of $235 per unit, and he plans a 20% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price per unit
Carol’s Cupcakes sells cupcakes and other desserts through its retail store. The company has always made all of its ingredients from scratch, but has recently been approached by a supplier that specializes in icing. Carol believes that the supplier’s icing is of equal quality to her own, and believes their offer of $3.00 per liter may enable her to save money. Carol is evaluating her own cost of producing icing: Per Liter 5,000 liters per year Direct materials $1.00 $5,000 Direct labour 0.50 2,500 Variable manufacturing overhead 0.25 1,250 Fixed manufacturing overhead – traceable* 1.00 5,000 Fixed manufacturing overhead - allocated 1.75 8,750 Total $4.50 $22,500 *40% relates to cleaning and maintenance of the icing equipment and 60% relates to depreciation of icing equipment (with no resale value) Examining the report, Carol says, “Their icing is just as good, and it would save me $1.50 per…

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Essentials of Business Analytics (MindTap Course …

Statistics

ISBN:

9781305627734

Author:

Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Essentials of Business Analytics (MindTap Course …

Statistics

ISBN:

9781305627734

Author:

Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS