Please help me James' Rockers Co. manufactures two models, Standard and Premium. Weekly demand is 180 units of the Standard Model and 100 units of the Premium Model. The following per unit data apply:Selling price per unitVariable expenses per unitTotal fixed expenses per unitNumber of machine hours required per unitO 140 units of Standard and 80 units of PremiumO 150 units of Standard and 75 units of PremiumStandardO 180 units of Standard and 60 units of PremiumO 200 units of Standard and 50 units of Premium$40$22Machine hours are the constrained resource. There are only 600 machine hours available per week. How many units of each model should James produce per week in order to maximize profits?$122Premium$60$40$44

The contribution margin is the difference between the sales and variable costs. The net income is…

Answered: James' Rockers Co. manufactures two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $800 per unit, of which $540 is product cost and $260 is selling and administrative expenses. In addition, the total cost of $800 is made up of $460 variable cost and $340 fixed cost. The desired profit is $168 per unit. Determine the markup percentage on total cost. %
Tamarisk Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Selling price Variable costs Machine hours Product Basic $44.00 $20.00 0.50 Deluxe $52.00 $24.00 0.70 Calculate the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic $ Deluxe
Cube Industries sells three products-P, Q and R. Here are data regarding these three products: Product Q Annual customer demand, in units Selling price, per unil Variable costs, per unit Direct labor hours to produce one unit O $17 per hour O $18 per hour O $19 per hour O $21 per hour Product P O None of the above 525 units $660 $280 20 hours 450 units $940 $515 25 hours Product R 600 units Cube's current capacity is 18,300 direct labor hours per year. How much should Cube be willing to pay per direct labor hour to acquire additional capacity? $370 $160 10 hours
Ivanhoe Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Selling price Variable costs Machine hours Product Basic $45.00 $23.00 0.50 Deluxe $56.00 $26.60 0.70 Calculate the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic $ Deluxe
Crane Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $42.00 $52.00 Variable costs $20.40 $24.80 Machine hours 0.60 0.80 A. Compute the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour $ $ B. Calculate total contribution margin if the additional 1,010 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 $ $ $
Driver Company manufactures two products. Data concern-ing these products are shown below: Direct TotalLabor ManufacturingHours OverheadHighest observed level . . . . . . . 6,000 $17,000Lowest observed level . . . . . . . . 4,000 14,000 Product A Product BTotal monthly demand (in units). . 1,000 200Sales price per unit . . . . . . . . . $400 $500Contribution margin ratio. . . . . 30% 40%Relative sales mix . . . . . . . . . . . 80% 20%If fixed costs are equal to $320,000, what amount of totalsales revenue is needed to break even?a. $914,286. c. $320,000.b. $457,143. d. $1,000,000.
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $1,200 per unit, of which $820 is product cost and $380 is selling and administrative expenses. In addition, the total cost of $1,200 is made up of $680 variable cost and $520 fixed cost. The desired profit is $180 per unit. Determine the markup percentage on total cost.fill in the blank 1 %
Ken's Fish & Tackle manufactures two reel models, Standard and Premium. Weekly demand is estimated to be 110 units of the Standard Model and 72 units of the Premium Model. The following per unit data apply: Standard Premium Contribution margin per unit $24 $30 Number of machine - hours required 6 5 The contribution per machine - hour is:
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 1,100 units and of Product N0 is 400 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product R3 1,100 10.0 11,000 Product N0 400 5.0 2,000 Total direct labor-hours 13,000 The direct labor rate is $20.60 per DLH. The direct materials cost per unit is $211.00 for Product R3 and $287.00 for Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product R3 Product N0 Total Labor-related DLHs $ 40,636 11,000 2,000 13,000 Production orders orders 65,880…
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 66.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 86.00 25.80 25.80 51.60 $34.40 Required 1 Required 2 40% Required 3 18.00 31.50 49.50 $16.50 25% The company estimates it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Contribution margin per pound of the constraining resource C $76.00 Complete…
Bright Force Inc. produces and sells lightning fixtures. An entry light has a total cost of $90 per unit, of which $50 is product cost and $40 is selling and administrative expenses. In addition, the total cost of $90 is made up of $55 variable cost and $35 fixed cost. The desired profit is $20 per unit. Determine the markup percentage on product cost.
The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.

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