Product-Profitability Analysis; Scarce Resources Creighton Corporation produces a varietyof consumer electronic products. Unit selling prices and costs for three models of one of its productlines are as follows:[LO 11-7]No Frills Standard Options SuperSelling price $40 $70 $86Direct materials 10 14 16Direct labor (@ $20/hour) 10 20 30Variable overhead 3 6 9Fixed overhead 3 6 6Variable overhead is charged to products on the basis of direct labor dollars; fixed overhead isallocated to products on the basis of machine hours.Required6. How can the optimum product mix be determined when there are more than two products and one ormore constraints?

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Variable costs:   Direct materials $0.15 Direct labor 0.06 Variable overhead 0.11 Fixed overhead 0.30 Total cost $0.62

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Assume a company makes only three products, A, B, and C. Product A Product B Product C Estimated customer demand in units Selling price per unit 800 700 $ 80 $ 45 Variable cost per unit $ 35 $ 20 Machine-hours per unit 2.5 1.25 The company has only 2.850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Choice O O $52.800 $59,800 $55,000 $57,800 600 $ 65 $ 26 3.0

Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,500 units of cellular phones are as follows: Variable costs:   Fixed costs:       Direct materials $ 90 per unit     Factory overhead $223,800     Direct labor 41       Selling and admin. exp. 78,600     Factory overhead 27           Selling and admin. exp. 22            Total $180 per unit     Smart Stream wants a profit equal to a 15% rate of return on invested assets of $630,000. a.  Determine the variable costs and the variable cost amount per unit for the production and sale of 4,500 units of cellular phones. Round to two decimal places. Total variable costs $fill in the blank 1 Variable cost amount per unit $fill in the blank 2 b.  Determine the variable cost markup percentage for cellular phones.fill in the blank 3 % c.  Determine the selling price of cellular phones. Round to…

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