Ivanhoe, Inc. produces three types of balloons-small, medium, and large-with the following characteristics: Small Medium Large Selling price per unit $6 $8 $12 Variable cost per unit 2 6 Contribution margin per unit $4.00 $3.00 $6.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 560 1,060 920 The company has only 2,000 machine hours available each month. How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.) Units Small Medium Large
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- unland, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $8 $8 $11 Variable cost per unit 3 5 6 Contribution margin per unit $5 $3 $5 Machine hours per unit 1 2.4 3 Demand in units 590 1,010 860 The company has only 2,000 machine hours available each month.How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.) Units Small Medium LargeBlossom, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $9 $8 $15 Variable cost per unit 3 5 6 Contribution margin per unit $6.00 $3.00 $9.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 620 1,100 950 The company has only 2,000 machine hours available each month.How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.) Units Small enter a dollar amount rounded to 0 decimal places Medium enter a dollar amount rounded to 0 decimal places Large enter a dollar amount rounded to 0 decimal placesRossiter Fittings produces two models of pipe fittings for underwater lines. The two models (RF-12 and RF-25) have the following characteristics, as developed by a product cost analyst RF-12 RF-25 $ 527 $367 11,997 $ 387 Selling price per unit Variable cost per unit $ 307 Expected units sold per year 3,483 The total fixed costs per year for the company are $1,118,960. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point in units. c. The head of marketing agrees with the data provided by the cost analyst but believes that the sales of the RF-12 model will be double in units from what the cost analyst predicts. The head of marketing agrees that the total unit volume is likely to be as predicted by the cost analyst. What would be the break-even point of sales in units using the assumptions of the head of marketing?
- Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: Question Content Area 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ___________ : ______________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans _______ Break-even table fans ______ 3. Prepare a contribution-margin-based income…es Alpena Corporation manufactures smartphone and tablet cases. The following is the cost of each unit. $ 7.35 2.95 0.95 11.70 $ 22.95 Mc Graw Hill ! 1 Materials Labor Variable overhead Fixed overhead ($1,755,000 per year; 150,000 units per year) Total Decatur Devices has approached Alpena with an offer to buy 3,000 cases at a price of $17.80 each for its new specialty tablet designed for health care workers. The regular price of an Alpena case is $26.50. Alpena has the total capacity to produce 180,000 units without increasing its fixed overhead. Decatur Devices requires that each case use its branding, which requires a more expensive embossing step. This will result in an additional $2.85 per case labor cost. The material cost of of the Decatur case will be the same as for the current models. The Decatur order will also require a one-time rental of embossing equipment for $6,549. Q A Required: a. Prepare a schedule to show the impact of filling the Decatur Devices order on Alpena's…Robinsons Company makes three products, all of which require the use of a special machine. Only 200 hours of machine time are available per month. Data for the three products are as a follow. Winston can sell as much of any product as it can make. Product 1 Product 2 Product 3 Selling Price P12 P16 P21 Variable Cost 7 8 10 Contribution Margin P5 P8 P11 Machine time required in min. 6 10 15 Required: Which product should be produced to maximize profits? Given the capacity constraint, determine which product the company should make and what total monthly contribution margin the company would earn by making only that product. How much would the selling price of the next most profitable (per machine hour) product have to rise to be as profitable as the product you selected in item 2?
- Pasadena Corp produces three products, and currently has a shortage of machine hours since one of its two machines is down-only 28 300 hours are available this month. The selling price, costs, and labor requirements of the three products are as followS: Product B $14.00 $ 6.00 2.00 Prodoct C Balling price Variable per mit Kachine hours par mit Frodact A $5.25 $5.00 $4.25 $3.00 1.25 0.25 4 What is the contribution margin per unit for each product? (Round your answers to 2 decimal places.) Centre PraducA Producd B Praducd C & What is the contribution margin per machine hour for each product? (Round your answers to 2 decimal places.)Geria Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows Enlightner 900 Foglighter 500 $ 495 $ 357 238 $ 119 Sales volume in units Unit sales price Unit variable cost Unit contribution margin It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $109.000. Demand is high enough for either product to keep the plant operating at maximum capacity. Assuming that sales mix in terms of units remains constant, what is the breakeven point in total units? Multiple Choice 717. 1,036 297 $ 198 975. Brou 19 of 20 ## NevrRianne Company produces a light fixture with the following unit cost:Direct materials $2Direct labor 1Variable overhead 3Fixed overhead 2Unit cost $8The production capacity is 300,000 units per year. Because of a depressed housing market,the company expects to produce only 180,000 fixtures for the coming year. The company alsohas fixed selling costs totaling $500,000 per year and variable selling costs of $1 per unit sold.The fixtures normally sell for $12 each.At the beginning of the year, a customer from a geographic region outside the area normallyserved by the company offered to buy 100,000 fixtures for $7 each. The customer also offeredto pay all transportation costs. Since there would be no sales commissions involved, this orderwould not have any variable selling costs.Required:1. CONCEPTUAL CONNECTION Based on a quantitative (numerical) analysis, should thecompany accept the order?2. CONCEPTUAL CONNECTION What qualitative factors might impact the decision?Assume that no other…
- Ellix Company manufactures two models of ultra-high fidelity speakers—the X200 model and the X99 model. Data regarding the two products follow: Product Direct Labor-Hours Annual Production Total Direct Labor-Hours X200 0.4 DLHs per unit 17,000 units 6,800 DLHs X99 0.6 DLH per unit 40,000 units 24,000 DLHs 30,800 DLHs Additional information about the company follows: Model X200 requires $35 in direct materials per unit, and model X99 requires $24. The direct labor workers are paid $20 per hour. The company has always used direct labor-hours as the allocation base for applying manufacturing overhead cost to products. Model X200 is more complex to manufacture than model X99 and requires special equipment. Because of the special work required in (d) above, the company is considering an activity-based absorption costing that applies manufacturing overhead cost to products using three activity cost pools: Activity Cost Pool Activity Measure Estimated Total Cost…Adams Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $5,900 6,200 3,500 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Adams for $2.60 each. Required X Answer is complete but not entirely correct. $ 19,300 Yes $ 24,180 X No 11,100 26,900 a. Calculate the total relevant cost. Should Adams continue to make the containers? b. Adams could lease the space it currently uses in the manufacturing process. If leasing would produce $11,800 per month, calculate the total avoidable costs. Should Adams continue to make the containers? a. Total relevant cost a. Should Adams continue to make the containers? b. Total avoidable cost b. Should Adams continue to make the containers?Robinsons Company makes three products, all of which require the use of a special machine. Only 200 hours of machine time are available per month. Data for the three products are as follows. Winston can sell as much of any product as it can make. Product 1 Product 2 Product 3 Selling Price P12 P16 P21 Variable Cost 7 8 10 Contribution Margin P5 P8 P11 Machine time required in min. 6 10 15 Required: Which product should be produced to maximize profits? Given the capacity constraint, determine which product the company should make and what total monthly contribution margin the company would earn by making only that product. How much would the selling price of the next most profitable (per machine hour) product have to rise to be as profitable as the product you selected in item 2?