Division C also produces two product lines. Because the division can sell all of the product it can produce, Dillard is expanding the plant and needs to decide which product line to emphasize. To make this decision, the division accountant assembled the following data:           Per Unit         K707 G582 Sales Price      $            84  $            50 Variable Costs   24 21 Contribution Margin    $            60  $            29 Contribution Margin Ratio   71% 58%     After expansion, the factory will have a production capacity of 4,700 machine hours per month. The plant can manufacture cither 40 units of K707s or 62 units of G582s per machine hour. Identify the constraining factor for Division C. Prepare an analysis to show which product line to emphasize.

The Dolomite Division of Manila Bay Corp. produces a high-quality crushed synthetic Dolomite. Unit production costs (based on capacity production of 100,000 units per year) follow:   Direct material $50 Direct labor 20 Overhead (20% variable) 10 Other information:   Sales price 100 SG&A costs (40% variable) 15       Refer to Dolomite Division of Manila Bay Corp. Assume, for this question only, that the Dolomite Division is producing and selling at capacity. What is the minimum selling price that the division would consider on a "special order" of 1,000 Dolomites on which no variable period costs would be incurred?   Solution: Direct Material       50 Direct Labor           20 Overhead                10 SG&A                        9 Opportunity Cost    5 Total                         94   Please explain how to get the opportunity cost of $5.

The Lumber Division of Paul Bunyon Homes Inc. produces and sells lumber that can be sold to outside customers or within the company to the Construction Division. The fllowing data have been gathered for the coming period: Lumber Division: Capacity Price per board foot Variable production cost per bd. ft. Variable selling cost per bd. ft. 200,000 board feet $2.50 $1.25 50,50 Construction Division: Board feet needed 60,000 Outside price paid per bd. ft. $2.00 If the Lumber Division sells to the Construction Division, $0.35 per board foot can be saved in shipping costs. if current outside sales are 150,000 board feet, what is the minimum transfer price per board foot that the Lumber Division could accept?

A company produces two products (product A &B) and is currently planning  its production mix for the next operating period. the maximum demand of product A is 2,000 units whiles that of product B is also 2,000 units however, the total raw materials required for producing both products is only 60,000kg. the estimated cost, sales and production data of the two products are given below;                                                       product(A)                 Product(B) Direct material:@GH¢10per Kg        240.00                       140.00 Direct labor:@GH¢30 per hour           60.00                          90.00 fixed overhead                                      20.00                         20.00 variable overhead:@GH¢40 per hour    80.00                       120.00 total cost per unit                                 400.00                        370.00 Add profit                                                50.00                          30.00 selling price per unit…

Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow: Selling price per unit on the intermediate market $ 136 Variable costs per unit $ 118 Fixed costs per unit (based on capacity) $ 8 Capacity in units 25,000 Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 5,000 speakers per year. It has received a quote of $133 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits. Required: Assume the Audio Division sells only 20,000 speakers per year to outside customers. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? What is the range of…

Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow:Selling price per unit on the intermediate market     $ 80Variable costs per unit     $ 62Fixed costs per unit (based on capacity)     $ 8Capacity in units     25,000 Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 5,000 speakers per year. It has received a quote of $77 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits.Required:     1. Assume the Audio Division is selling 22,500 speakers per year to outside customers.  A.   From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division?  B.   From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division?   C.  What is the…

Help me please

You are given the following for the production of office chairs by the company ‘Chairs and More” :   Quantity produced Total Fixed Costs (JMD$) 100 10,000 200 10,000 300 10,000 400 10,000 500 10,000 600 10,000   Variable cost per unit is $150. The production of 15,000 chairs will cost: a) $2,260,000 b) $1,500,000 c) $10,000 d) $25,000

ABC INC product is currently produced at 10 materials, 40 labor and 15 overhead. If automation is implemented, the product can be produced at 10 materials, 5 labor and 35 overhead. At a total of 10,000 units, what is the net incremental cost or benefit if the production decides to move into automation?