Logan Company produces two products, Standard and Premier. Logan can sellall of the Standard and Premier products it can produce, but it has limitedproduction capacity. Machine hours per unit for Standard is 2 hour and forPremier Is 3.0 hours. The company has 220,320 machine hours available.Contribution margin per unit is $24.00 for Standard and $30.00 for Premier.What is the most profitable sales mix for Logan Company?Multiple ChoiceО73,440 Standard units and 24.480 Premier units.18,360 Standard units and 61,200 Premier units.110,160 Standard units and O Premier units.

The objective of this question is to determine the most profitable sales mix for Logan Company given…

Answered: Logan Company produces two products,…

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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Logan Company produces two products, Standard and Premier. Logan can sell all of the Standard and Premier products it can produce, but it has limited production capacity. Machine hours per unit for Standard is 4 hour and for Premier is 6.0 hours. The company has 226,800 machine hours available. Contribution margin per unit is $24 for Standard and $30 for Premier. What is the total contribution margin if Logan chooses the most profitable sales mix? Multiple Choice $1,760,000. $1,360,800. $1,910,000.$2,310,000. $1,300,000. Please don't give solution in image
Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variable cost to produce this component is $1.59 per unit; full cost is $2.00. The component sells on the open market for $5.09. Assuming Division East has excess capacity, what is the lowest price Division East will accept for the component? What is the highest price that Division West will pay for it?
Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Сaрacity 300,000 Demand 250,000 Selling price $135 VC per unit $78 Total FC $150,000 Division B would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made each period. If Division A sells to Division B rather than to outside customers, the variable cost be unit would be $5 lower. What should be the lowest acceptable transfer price from the perspective of Division A? an outside company for $38 per unit Division B requires 5,000 units of the part
Logan Company can sell all of the standard and premier products they can produce, but it has limited production capacity. It can produce 6 standard units per hour or 5 premier units per hour, and it has 36,000 production hours available. Contribution margin per unit is $20 for the standard product and $30 for the premier product. What is the most profitable sales mix for Logan Company? rev: 12_18_2020_QC_CS-244914 Multiple Choice 0 standard units and 180,000 premier units. 180,000 standard units and 30,000 premier units. 216,000 standard units and 0 premier units. 36,000 standard units and 150,000 premier units. 150,000 standard units and 55,000 premier units.
Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variable cost to produce this component is $1.56 per unit; full cost is $1.98. The component sells on the open market for $4.96. Assuming Division East has excess capacity, what is the lowest price Division East will accept for the component? What is the highest price that Division West will pay for it? (Enter your answers in 2 decimal places.)
Swan Company has two divisions, Hill and Paradise. Hill produces a unit that Paradise could use in its production. Paradise currently is purchasing 5,600 units from an outside supPplier for $62. Hill is operating at less than full capacity and has variable costs of $36.80 per unit. The full cost to manufacture the unit is $49.40. Hill currently sells 450,600 units at a selling price of $67.60. How much will Paradise save by not purchasing from outside if a transfer price of $48 is agreed upon? Multiple Choice $78,400 $56,600 $7,600 more cost $28,600
Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variable cost to produce this component is $1.57 per unit; full cost is $1.93. The component sells on the open market for $4.90. Assuming Division East has excess capacity, what is the lowest price Division East will accept for the component? What is the highest price that Division West will pay for it? (Enter your answers in 2 decimal places.) lowest price they will accept Highest price they will accept
PT. XYZ currently has two profit centers, namely division X and division Y. Division X produces 1,000 units of printer components and sold to division Y or to the external market, at a market price of Rp. 1.000,00 / unit. The cost of the printer component product is a variable cost of Rp. 300,00, fixed costs Rp. 500.000,00. Costs that can be avoidable (avoidable cost) if the products of Division X are sold to Division Y in the presence of selling costs consisting of: discount per runit Rp.60,00. advertising costs Rp. 40,00 / unit and distribution costs and others of Rp. 20,00 / unit. Product division X (printer component) still was carried out by Division Y into (certain printer equipment) at an additional cost of Rp. 1.200,00 / unit. Products from division Y (certain computer equipment) can be sold at a price of Rp. 2.500,00 units. With a marketing cost of Rp. 400,00 / unit. Assume 60% of the printer component (product of division X) is sold to division Y as raw material, and the…
Value Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 32,000 parts is $90,000, which includes fixed costs of $30,000 and variable costs of $60,000. The company can buy this part from an external supplier for $5 per unit and avoid 10% of the fixed costs. If Value Electronics decides to outsource the production of the part, how will it impact its operating income? A. Operating income increases by $97,000. B. Operating income decreases by $100,000. C. Operating income decreases by $97,000. D. Operating income increases by $100,000.
Charleston Affair currently makes the King Component, incurring variable costs of $18 per unit and fixed costs of $4 per unit. The company has the option to purchase the component for $20 per unit. Prepare a differential analysis to determine if the company should make (Alternative 1) or buy (Alternative 2) the King Component. Assume that the fixed costs will be incurred in each situation up to 40,000 units. Determine at what want point of sales does it make sense to produce rather than buy)
Edwards Company has two operating divisions, A and B. The following information is provided for Division A: Unit selling price $158 $108 $ 28 Unit variable costs Unit fixed costs Division B uses the type of product produced by Division A and has approached Division A about buying the product internally. Division B is currently paying $153 to purchase the product from an outside source. If Division A sells internally it can save $14.0 per unit in variable costs. Assuming that Division A has sufficient excess capacity to produce all of the units requested by Division B, which of the following is the lowest price Division A should consider for the transfer? Multiple Choice $94.00 $108.00 $153.00 $144.00
Sandpiper Inc. has a division that manufactures a component that sells for $165 and has a variable cost of $45. Another division of the company wants to purchase the component Fixed cost per unit of the component is $20. What is the minimum transfer price if the division is operating at capacity? OA. $165 OB. $45 OC. $20 OD. $65

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