Kareem Industry produces three types of products: X, Y and Z. There is unlimited demand for the products throughout Southern Ontario. The following information is provided:     X   Y   Z Unit selling price $60   $40   $20 Unit contribution margin $30   $20   $10 Processing time required per unit 1.25 hours   0.8 hours   0.5 hours        Processing time is limited to 180 hours per month.  What product mix should Kareem choose in order to maximize overall profit?  a)Produce 144 units of X   b)Produce 360 units of Z   c)Produce 225 units of Y   d)Produce 85 units of X and 40 units of Y   e)Produce 70 units of X, 70 units of Y and 70 units of Z

Subject: acounting

FRANCORP sells two products.                                                                                 Products   M        N                 Selling price per unit                                                  $80 $60 Less variable expenses per unit                                 $46 $40 Contribution margin per unit                                       $34 $20 Current demand per week (units)                               2,100 2,400 Processing time required on machine XYZ per unit  2 min. 1 min.   Machine XYZ is a constrained resource and is being used at 100% capacity. Machine XYZ has a capacity of 3,000 minutes per week.   Assuming FRANCORP wants to maximize its total contribution margin, how much of each product should it produce?   a. 2400 units of N and 300 units of M b. 300 units of N and 2100 units of M c. 1200 units of N and 1050 units of M d. 2400 units of N and 0 units of M

The following information is for Bullwinkle Industries Inc.: Line Item Description East West Sales volume (units):     Product Alpha 45,000 38,000 Product Omega 60,000 50,000 Sales price:     Product Alpha $500 $600 Product Omega $250 $225 Variable cost per unit:     Product Alpha $275 $275 Product Omega $140 $140 a.   Determine the contribution margin for the East Region and West Region.East Region: fill in the blank 1 of 2$West Region: fill in the blank 2 of 2$ b.   Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.East Region: fill in the blank 1 of 2%West Region: fill in the blank 2 of 2%

Division A makes a part with the following characteristics:   Production capacity in units 15,000 units Selling price to outside customers $30 Variable cost per unit $20 Total fixed costs $60,000   Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A.   Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into sales to outside customers. What would be the minimum acceptable price that Division A would accept to transfer 5,000 units of the part to Division B? $30 $20 $10 None of the above     2. Jack Sparrow, Inc. produces and sells 20,000 units of Product X each month. The selling price of Product X is $30 per unit, and variable expenses are $21 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $50,000 of the $250,000 in fixed expenses charged…

3. JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Product                            Selling price per unit             Variable cost per unit Trunk switch                           $60.00                                        $28.00 Gas door switch                     $75.00                                        $33.00 Glove box light                       $40.00                                        $22.00 Their sales mix is reflected in the ratio 4:4:1.  What is the overall Composite Unit Contribution Margin for JJ Manufacturing with their current product mix?  If annual fixed costs shared by the three products are $18,840, how many units of each product are to be sold in order for JJ Manufacturing to break even? Trunk Switch? Gas Door Switch? Glove Box Light? Determine their break-even point in sales dollars. Trunk Switch? Gas Door Switch? Glove Box Light?

The following information relates to a. The following per-unit cost information relates to Product K of Magna Company, based on the maximum capacity of 40,000 units. Variable Manufacturing $ 30 Variable Selling 4 Fixed Manufacturing 12 Fixed Selling 7 Unit cost $ 53 Magna is expected to sell all of 40,000 units produced to its regular customers for a price of $80 per unit. Sonya has approached Magma to buy 10,000 units of Product K. If Magna sells to Sonya, variable selling costs will not be incurred. To Sonya, Magna has to charge at least per unit? Multiple Choice $80 $76 $26 $53 $30

Island Novelties, Incorporated, of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 12 $ 120 Variable expense per unit $9 $ 48 Number of units sold annually 36,000 5,400 Fixed expenses total $ 437,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the company's break - even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. 2. The company has developed a new product called Samoan Delight that sells for $45 each and that has variable expenses of $27 per unit. If the company can sell 12,000 units of Samoan Delight without incurring any additional fixed expenses: a. Prepare a revised contribution…