Cube Industries sells three products-P, Q and R. Here are data regarding these three products:Product QAnnual customer demand, in unitsSelling price, per unilVariable costs, per unitDirect labor hours to produce one unitO $17 per hourO $18 per hourO $19 per hourO $21 per hourProduct PO None of the above525 units$660$28020 hours450 units$940$51525 hoursProduct R600 unitsCube's current capacity is 18,300 direct labor hours per year. How much should Cube be willing topay per direct labor hour to acquire additional capacity?$370$16010 hours

Contribution margin is the excess of selling price over the variable cost. However, when there is a…

Answered: Cube industries sells three pr Annual…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Here are data regarding the three products that Acme Company makes and sells: Product P Product Q Product R Annual customer demand, in units Selling price, per unit 1,200 units 1,500 units 1,000 units $80 $83 $45 Variable operating costs, per unit Machine time to produce one unit $35 $26 $20 2.5 hours 3.0 hours 1.25 hours Acme's current capacity is 4,250 machine hours per year. What is the maximum amount that Acme should be willing to pay per machine hour to acquire an additional 100 hours of capacity? ○ $18 $20 ○ $23 ○ $19
Melanio Company produces a merchandise that has the following data: Unit Sales Price P80 per unit P48 per unit P640,000 per annum 25,000 units Unit Variable Costs Total Fixed Costs Units sold during the current year
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.11 $ 543.37 $ 519.00 Variable cost per unit $ 252.05 $ 420.86 $ 397.71 Time on the constraint (minutes) 4.00 8.00 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.) A. GK LG QX B. Maximun Amount
Knotley Co. sells two products, X and Y. Last year Knotley sold 14,000 units of X’s and 21,000 units of Y’s. Related data are: Unit Selling Price Unit Variable Unit contribution Product Price Cost Margin X $110 $70 $40 Y 70 50 $20 What was Knotley Co.’s overall unit variable cost? A. $58 B. $48 C. $70 D. $50
Information about the Harmonious Company's two products includes: Unit selling price Unit variable costs: Manufacturing Selling Total Product X $11.25 Product y $11.25 $5.25 -75 $6.00 $6.75 -75 $7.50 Monthly fixed costs are as follows: Manufacturing Selling and administrative Total $82,500 45,000 $127.500 1. What is the total monthly sales volume in units required to break even when the sales mix in units is 70 percent Product X and 30 percent Product Y? 2. If the sales mix in units is 50 percent Product X and 50 percent Product Y, the monthly break-even total sales dollars is The following data pertain to the three products produced by Beta Corporation: A B C Selling price per unit $6.00 $8.00 $9.00 Variable costs per unit 4.00 Contribution margin per unit $2.00 4.00 $4.00 4.00 $5.00 Fixed costs are $77,000 per month. Twenty percent of all units sold are Product A, fifty-five percent are Product B, and twenty-five percent are Product C. What is the monthly break-even point for total…
Sheridan Company manufactures and sells two products. Relevant per unit data concerning each product follow. Selling price Variable costs Machine hours (a) Product Basic $42.0 $24.0 0.5 Deluxe $55.0 $29.4 x Your answer is incorrect. 0.8 Compute the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic 40 $ Deluxe 51 F
Grease Company makes three products. Following are the revenue and cost data for a typical month. PRODUCTS X Y Z TOTAL Sales P300 P500 P800 P1,600 Variable Costs 100 200 400 700 Contribution Margin P200 P300 P400 P900 Fixed Costs: Avoidable P80 P100 P120 P300 Common, allocated on the basis of peso sales 60 100 160 320 Total Fixed Costs P140 P200 P280 P620 PROFIT P60 P100 P120 P280 REQUIRED: Answer each of the following questions independently. What will total profit be if the company simply drops Product X? The company is considering selling the new product, Product P, in place of Product X. Product P will sell for P7 per unit, have variable costs of P5 per unit, and have avoidable fixed costs of P130. How many units of Product P would be the company has to sell to maintain its total income of P280? The company charges P10 per unit for…
Grease Company makes three products. Following are the revenue and cost data for a typical month. PRODUCTS X Y Z TOTAL Sales P300 P500 P800 P1,600 Variable Costs 100 200 400 700 Contribution Margin P200 P300 P400 P900 Fixed Costs: Avoidable P80 P100 P120 P300 Common, allocated on the basis of peso sales 60 100 160 320 Total Fixed Costs P140 P200 P280 P620 PROFIT P60 P100 P120 P280 REQUIRED: Answer each of the following questions independently. Closer analysis reveals that X, Y, and Z are joint products of a joint process and all are now being processed beyond the split-off point. The cost of the joint process including raw material, is the P320 joint allocated fixed cost. All of the split-off point. If the sales values of X, Y, and Z at split-off are P110, P220, and P230, respectively, could be the company increase its profits by selling…
Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? Finisk a. 47.5% O b. 52.5% O c. 70% ype here to search & 7. V 3 5. 8. W. R Y. G H. V M alt ctri alt 立

:Salem Company has the following information for tables production Number of units Sales price per unit Variable costs per unit 1,800 $1,900 1,140 The Contribution margin per unit is 440 SA O 760 S.B 660 S.c O S100.D O يمنع الانتقال إلى السؤال التالى إجراء تغي يرات على هذه الإجابة. شب هنا ل لبحث a
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.09 $ 543.35 $ 518.00 Variable cost per unit $ 252.04 $ 420.85 $ 397.70 4.10 8.10 8.00 Time on the constraint (minutes) Required: 1. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. 2. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.)

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