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All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product:
|
Model A |
Model B |
Model C |
Selling price |
$22 |
$30 |
$35 |
Direct materials costs |
$2 |
$5 |
$8 |
Direct labor costs ($15 per labor hour) |
$15 |
$10 |
$14 |
Variable support costs ($3 per machine hour) |
$3 |
$8 |
$6 |
Fixed support costs |
$100 |
$100 |
$100 |
Assuming that the company is constrained on machine hours, and all units produced can be sold, then which model is the most profitable?
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- Pharoah Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Basic Basic Plus Premium Total Units sold 935 510 255 1,700 Selling price $250 $430 $840 Variable cost $195 $285 $410 The company's total fixed costs to produce the filtration systems are $176,960. (a) (b) (c) (d) Determine the number of units of each model that the company must sell to break even. Basic Basic Plus Premium Break-even units units eTextbook and Media Save for Later units units Attempts: 0 of 3 used Submit Answermework int Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat-Sport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are erences Mc Graw Hill Price per unit Variable cost per unit Machine minutes per unit °F artly cloudy The one machine that is used to produce both models has a capacity of 29,700 machine-minutes per quarter. Fixed manufacturing costs per quarter are $355,000. Required A Required B Required: a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each model should WSG produce in a quarter? b. Suppose that the maximum unit sales in a quarter that WSG can achieve is 4,200 units of each product. How many units of each model should WSG produce in a quarter? Complete this question by entering your answers in the tabs below. Sport $195 $ 72 6 Sport Model Collegiate Model W Suppose that the maximum unit sales in a quarter…Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price per unit $ 240 $ 370 $ 225 Variable cost per unit $ 100 $ 255 $ 105 Plastic injection molding machine processing time required to produce one unit 7 minutes 5 minutes 7 minutes Pounds of plastic pellets per unit 15 pounds 7 pounds 10 pounds If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product?
- I could use a hand with thisHareshIf each motorcycle requires a fan belt that costs $2.000 and between 1.500 and 2,000 motorcycles are produced in the month, the total cost for all of the fan belts used is: O considered to be a direct variable cost. O considered to be an indirect variable cost O considered to be a direct fixed cost. O considered to be an indirect fixed cost.
- Please help me with all answers thankuPreparing a Standard Cost Card -Redwing EXO-7 Industries manufactures a Redwing reconnaissance drone. The following information pertains to its manufacturing costs. To make one redwing unit it takes 2 pounds of titanium and 0.5 pounds of carbon fiber. The company expects 0.01 pounds of waste for titanium and 0.02 waste for the carbon fiber materials. Titanium costs are anticipated at $10.25 per pound and carbon fiber costs are anticipated at $5.25 per pound. A 1% discount is offered to EXO-7 Industries from its suppliers. The redwing unit requires two labor processes to complete it -assembly and programming. Assembly laborers are paid $17 per hour and programming laborers are paid $27 per hour. Fringe benefits and payroll taxes for assembly and programming laborers amount to $1.75 and $5.25 per hour, respectively. Based on the company’s experience and research, it expects to use 5.0 hours of assembly and 10 hours of programming. The company uses direct labor hours as…Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts: Direct Labor- Hours per unit 0.40 0.60 Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $18 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Annual Production 26,000 units 88,000 units Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours. Estimated Overhead Cost $28,160 $ 164,560 $ 780,000 Estimated Activity Rims 110 2,000 10,400 Posts 90 0 52,800 Total 200 2,000 63,200 2. Determine the unit product cost of each product…
- Surf Company can sell all of the two surfboard models it produces, but it has only 424 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $224 for Glide and $348 for Ultra. (a) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Required A Required B Compute the contribution margin per direct labor hour for each product. Glide Ultra Contribution margin per direct labor hourSurf Company can sell all of the two surfboard models it produces, but it has only 416 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $216 for Glide and $332 for Ultra. (a) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Required A Required B Compute the contribution margin per direct labor hour for each product. Glide Ultra Contribution margin per direct labor hour $ $Lifemaster produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that Lifemaster could use all of its available machine hours producing either model. The two models are processed through the same production department. A B C 1 Per Unit 2 Deluxe Regular 3 Sale price $1,020 $580 4 Less expenses: 5 Direct materials 280 100 6 Direct labor 92 184 7 Variable manufacturing overhead 246 82 8 Fixed manufacturing overhead* 114 38 9 Variable operating expenses 119 61 10 Total expenses $851 $465 11 Operating income $169 $115 *Allocated on the basis of machine hours What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Prepare the product mix analysis.