Theory of constraints, contribution margin, sensitivity analysis. Damon Furniture (DF) produces fiberglass doors in two processes: molding and finishing. DF is currently producing two models: Masoline and Aldernite. Production in the molding department is limited by the amount of materials available. Production in the finishing department is limited by the amount of trained labor available. The only variable costs are materials in the molding department and labor in the finishing department. Following are the re- quirements and limitations by model and department: Molding Materials 30 pounds per door 3 hours per door 45 pounds per door 540,000 pounds $3 per pound Selling Price $235 per door $305 per door Finishing Time Masoline Aldernite Materials/Labor Available Cost of materials and labor 4 hours per door 102,000 hours $15 per hour

Theory of constraints, contribution margin, sensitivity analysis. Damon Furniture (DF) produces fiberglass doors in two processes: molding and finishing. DF is currently producing two models: Masoline and Aldernite. Production in the molding department is limited by the amount of materials available. Production in the finishing department is limited by the amount of trained labor available. The only variable costs are materials in the molding department and labor in the finishing department. Following are the re- quirements and limitations by model and department: Molding Materials 30 pounds per door 3 hours per door 45 pounds per door 540,000 pounds $3 per pound Selling Price $235 per door $305 per door Finishing Time Masoline Aldernite Materials/Labor Available Cost of materials and labor 4 hours per door 102,000 hours $15 per hour

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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Please show the solution on how to get the answer.
How do I work this problem in excel? Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit.
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