Passata Limited makes 3 products. The details of which are set out below:ProductChoppedPasteVariablecostsPrice€40€90€150€10€20€35Raw material DemandUnits(units)41,80062,000700ChutneyDemand (units)There is a shortage of the raw material and only 16,000 units will be available for the nextmonth.If the production plan is revised, how many units of Paste should the company produce for the nextmonth?Enter your answer as a whole number only.4

Lets understand the basics. When any resource is scarce then management use scare resources in the…

Answered: Passata Limited makes 3 products. The…

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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Andrew Company expects to incur the following costs at the planned production level of 20,000 units: DM P200,000 DL 240,000 VOH 120,000 FOH 60,000 The selling price is P50 per unit. The company currently operates at full capacity of 20,000 units. Capacity can be increased to 26,000 units by operating overtime. Variable costs increase by P28 per unit for overtime production. Fixed overhead costs remain unchanged when overtime operations occur. Andrew has received a special order from Leann Inc. who has offered to buy 4,000 units at P60 each. Should the company accept the special order?
XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 15% of purchase price. The price OMR 3 per kg. The company is operating 6 days per week. What is the minimum annual total cost in OMR? Round-up to the nearest integer a. 12184 b. None is correct c.12000 d. 8175 e. 9000
Paradise Marine Sails manufactures sails for sailboats. The company’s capacity is 29,000 sails per month. They are currently producing 25,000 sails a month. Current production cost can be found in the chart below: Sales Price $200 Variable Cost Manufacturing Cost $100 Administrative Cost $50 Total Fixed Cost Manufacturing $500,000 Administrative $480,000 Should you accept a special order at a price of $170 for 3000 sails? Fixed cost will increase by $9,000 to produce these sails. Give a numerical justification Would your answer be different if the company was currently producing 28,000 sails?
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
ABC company uses 8,000 pens every year. For each pen, cach order cost is $30 and the annual holding cost is 10 per cent of unit cost. The unit cost depends on the quantity ordered as follows: Quantity 1-199 Unit Cost (S) 20 200-499 18 500-799 16 800+ 12 > Assume that demand has a constant rate and do not stockout; a) What is the optimal order size? b) Determine the yearly order quantity
Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $25. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units. The operating income for the next month is : Select one: a. 15,000 b. 60,000 c. 135,000 d. 75,000
oncorde Ltd has been asked to quote a price for an order of 8 units of Product Delta. Making this product will require skilled labour, which is currently in hort supply and is paid £15 an hour. If the order is accepted, all necessary labour will have to be transferred from existing work. As a result, other orders will be lost. It is estimated that for each hour transferred to this contract £45 will be lost (calculated as lost sales revenue £75, less materials £15 and labour 15). The production manager believes that, owing to a learning process, the time taken to make each unit will reduce, from 20 hours to make the first one, by one hour a unit made. (That is 20 hours to make the first one, 19 hours to make the second, 18 hours to make the third one and so on.) What is the total relevant cost of skilled labour for the purposes of the order? The relevant cost for skilled labour will be will be £. ... Time Remaining: 00:43:50 Next
ABC Company sells a product for $100 per unit. Variable costs are $60 per unit, and fixed costs are $3,000 per month. The company expects to sell $600 units in September using the contribution margin format. In the income statement for September using the Contribution Margin Format, the Contribution Margin is and the Operating Income is_ O $20,000 and $22,000 O $22,000 and $19,000 O $24,000 and $21,000 O $23,000 and $20,000 O $21,000 and $18,000
Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 165,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 135,000 per month How many units must Lamar produce and sell in order to break-even?
Al Khaleej Inc. needs 400 kgs of a material per month. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it Ihe annual holding cost is 15 % of purchase price. The price RO 1 per kg. The company is operating 6 workdays per week in a 52-week year. At what quantity in kgs you may place a new order? Round-up to the nearest integer Select one: O a. 185 O b. 247 Oc 2// Od. 154 O e. None is correct

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