Exercise 3.- Determine the optimal production mix and prepare the income statement with the following information: A company produces pillows of three types: Standard, Deluxe and Orthopedic. Orthopedic. Standard $280 $130 2.5 hrs. 1000 units Deluxe $490 $385 2 hrs. 800 units $650 $590 4 hrs. 400 units Unit sales price Unit variable cost Man hours per unit Demand Fixed costs $100,000 This month, there were problems with staff turnover and layoffs, so the workforce is only 5,000 hours.

Exercise 3.- Determine the optimal production mix and prepare the income statement with the following information: A company produces pillows of three types: Standard, Deluxe and Orthopedic. Orthopedic. Standard $280 $130 2.5 hrs. 1000 units Deluxe $490 $385 2 hrs. 800 units $650 $590 4 hrs. 400 units Unit sales price Unit variable cost Man hours per unit Demand Fixed costs $100,000 This month, there were problems with staff turnover and layoffs, so the workforce is only 5,000 hours.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 22E: Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart...

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