Southern Production Company has 100 labor-hours available. There is no limit on machine-hours. Southern can sell all of B it wants, but it can only sell 45 units and 20units of A and C, respectivelyContribution margin perunitLabor-hours per unitMachine-hours per unitProductA$152.55Product B$102.53.5ProductC$12211 a) What is the contribution margin per labor-hour for Product A?b) What is the contribution margin per labor-hour for Product B?c) What is the contribution margin per labor-hour for Product C?d) How many units of Product A should the company make?e) How many units of Product B should the company make? f) How many units of Product C should the company make?

Direct cost- The cost is directly related to the production of the goods or services traced from the…

Answered: Southern Production Company has 100…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ABC Company sells a single product at a price of $250 per unit. Direct material is $45, direct labor is $55, variable manufacturing overhead costs is $20 per unit, and variable selling costs are $30 per unit. If ABC fixed costs are $290,000, the break-even point in sales dollars will be? O a. $580,000. O b. $290,000. O c. $2,000. O d. none of the these is correct. O e. $725,000.
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $32 per pound and costs $29 per pound to produce. Product C would sell for $61 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? a. $32 per pound b. $29 per pound c. $61 per pound d. $23 per pound
Company XYZ produced and sold 6,000 units. The selling price per unit was OMR10. The variable manufacturing cost per unit was OMR5. The variable selling and administrative expenses per unit was OMR4. The total fixed expenses were OMR2,000. Calculate the total contribution margin. Select one: O a. OMR60,000 O b. OMR6,000 Oc. OMR30,000 O d. OMR4,000 O e. OMRS8,000
The contribution margin ratio is 60%. If total fixed costs are $22,000, then what is the total cost (5) of producing and selling 60,500 units? The selling price is $4 per unit 145,200 a O 123,200b O 220,000cO 96,800 dO None of the given answers.e O
Which of the following is a mixed cost? A cost that is P40 per unit when production is 50,000 and P40 per unit when production is 80,000 A cost that is P20 per unit when production is 50,000 and P20 per unit when production is 80,000 A cost that is P20 per unit when production is 50,000 and P12.50 per unit when production is 80,000 A cost that is P20 per unit when production is 50,000 and P16.25 per unit when production is 80,000
Rakesh
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $31 per pound and costs $29 per pound to produce. Product C would sell for $56 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? Oa. $23 per pound Ob. $29 per pound Oc. $56 per pound Od. $31 per pound
The Dickens Corporation produces one product, which it sells for $120. Variable costs are $72 per unit, and fixed costs are $80,000. What is the break-even point in dollars and in units? Please show work in Excel if possible.
Sunn Company manufactures a single product that sells for $215 per unit and whose variable costs are $172 per unit. The company's annual fixed costs are $597,700. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: (c) Compute the company's break-even point in units. 1 1 Numerator: 1 1 Numerator: Denominator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: = = II II = Contribution Margin Ratio Contribution margin ratio Break-Even Units Break-even units Break-Even Dollars Break-even dollars
A company’s productive capacity is limited to 480,000 machine hours. Product X requires 10 machine hours to produce; Product Y requires 2 machine hours to produce. Product X sells for $32 per unit and has variable costs of $12 per unit; Product Y sells for $24 per unit and has variable costs of $10 per unit. Assuming that the company can sell as many of either product as it produces, it should a. Produce X and Y in the ratio of 57% X and 43% Y. b. Produce X and Y in the ratio of 83% X and 17% Y. c. Produce equal amounts of Product X and Product Y. d. Produce only Product X. e. Produce only Product Y.
Sunn Company manufactures a single product that sells for $210 per unit and whose variable costs are $168 per unit. The company's annual fixed costs are $575,400. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. 1 Numerator: (c) Compute the company's break-even point in units. 1 1 Numerator: Denominator: Numerator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: II Contribution Margin Ratio Contribution margin ratio Break-Even Units Break-even units 0 Break-Even Dollars Break-even dollars 4
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $ 480,000, and fixed selling and administrative costs are $240, 000 per year. Required: Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Confirm your results by preparing a contribution margin income statement in excel for the break - even sales volume.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS