When a company has limited resources, management must decide which products to make and sell in...
When a company has limited resources, management must decide which products to make and sell in order to maximize net income. True False
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Management must prioritize the products with high profitability and make only them when the company is operating with the limited resources. Comment if you face any issues |
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When a company has limited resources, management must decide
which products to make and sell in...
VC A company can produce and sell only one of the following two products: Sales Machine...
VC A company can produce and sell only one of the following two products: Sales Machine Hours Sale Price Variable Fixed Required per Unit per Unit Cost per Unit Cost per Unit Product A 5 (2,000) = 10,000 $140 $50 $30 Product B 3(2,000) = 6,000 $98 $26 $22 If the company has limited machine capacity of 2,000 hours, what is the total contribution margin of the product it should produce in order to maximize net income? a. $48,000 b....
32. When producing joint products, what are the relevant costs for a decision to sell or process...
32. When producing joint products, what are the relevant costs for a decision to sell or process further? a. Joint costs b. Costs incurred before the splitoff point c. Costs incurred at the splitoff point d. Costs incurred after the splitoff point. 33. Which of the following describes the cost of maintaining warehouse facilities? a. carrying costs. b. set-up costs. c. order costs. d. sunk costs. 34. Which of the following is a method of managing purchasing, production, and sales, by which the...
You must decide how many units each of two products that use the same resources. The...
You must decide how many units each of two products that use the same resources. The products are X and Y The profit for X is $30 and the profit for Y is $33. For Resources 1, 2 and 3 product X requires 2. 1. and 4 hours, respectively. For Resources 1, 2 and 3 product Y requires 3, 2, and 2 hours, respectively. The available hours on Resources 1, 2, and 3 are 270,300, and 200, respectively. There are...
Amanager must decide on the mix of products to produce for the coming week. Product Arequires...
Amanager must decide on the mix of products to produce for the coming week. Product Arequires three minutes per unit for molding, two minutes per unit for painting, and one minute for packing. Product B requires two minutes per unit for molding, four minutes for painting, and three minutes per unit for packing. There will be 550 minutes available for molding, 500 minutes for painting, and 450 minutes for packing. Product A has a contribution of $1.50 per unit and...
Question 7 Maplewood Company must decide whether to make or buy some of its components. The...
Question 7 Maplewood Company must decide whether to make or buy some of its components. The costs of producing 61,000 switches for its generators are as follows. Direct materials Direct labour $30,500 42,090 Variable overhead Fixed overhead $57,950 60,390 Instead of making the switches at an average cost of $3.13 $190,930 = 61,000), the company has an opportunity to buy the switches at $2.93 per unit. If the company purchases the switches, all the variable costs and one-third of the...
Blossom Company must decide whether to make or buy some of its components. The costs of...
Blossom Company must decide whether to make or buy some of its components. The costs of producing 65,700 switches for its generators are as follows. Direct materials $31,000 Direct labor $34,229 Variable overhead $45,900 Fixed overhead $84,000 Instead of making the switches at an average cost of $2.97 ($195,129 = 65,700), the company has an opportunity to buy the switches at $2.71 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs...
Flint Company must decide whether to make or buy some of its components. The costs of...
Flint Company must decide whether to make or buy some of its
components. The costs of producing 62,600 switches for its
generators are as follows.
Direct materials
$29,000
Variable overhead
$44,400
Direct labor
$28,644
Fixed overhead
$82,000
Instead of making the switches at an average cost of $2.94
($184,044 ÷ 62,600), the company has an opportunity to buy the
switches at $2.69 per unit. If the company purchases the switches,
all the variable costs and one-fourth of the fixed costs...
5. 8 The management of a company must decide between two proposals. The following information is available Investment N...
5. 8 The management of a company must decide between two proposals. The following information is available Investment Net Cash Inflow at the End Of Proposal A Now Year 1 Year 2 Year 3 80000 95400 39000 12000 100000 35000 58000 80000 Advise management regarding the proposal that should be selected, assuming that on projects of this type the company can earn ji 14%
5. 8 The management of a company must decide between two proposals. The following information is...
Maplewood Company must decide whether to make or buy some of its components. The costs of...
Maplewood Company must decide whether to make or buy some of
its components. The costs of producing 59,900 switches for its
generators are as follows.
Direct materials
$31,148
Variable overhead
$53,311
Direct labour
41,331
Fixed overhead
59,301
Instead of making the switches at an average cost of $3.09
($185,091 ÷ 59,900), the company has an opportunity to buy the
switches at $2.89 per unit. If the company purchases the switches,
all the variable costs and one-third of the fixed costs...
A company is attempting to decide the mix of products which it should produce next week....
A company is attempting to decide the mix of products which it should produce next week. It has six products, each with a unit profit (unit profit =selling price –variable cost per unit) and a unit production time as shown below: Product Profit ($/unit) Production time (hours/unit) 1 10 1 2 22 2 3 35 1.7 4 19 2.4 5 55 4.5 6 115 9.5 The company has 720 hours available next week. The company has the following additional linear...
VC A company can produce and sell only one of the following two products: Sales Machine Hours Sale Price Variable Fixed Required per Unit per Unit Cost per Unit Cost per Unit Product A 5 (2,000) = 10,000 $140 $50 $30 Product B 3(2,000) = 6,000 $98 $26 $22 If the company has limited machine capacity of 2,000 hours, what is the total contribution margin of the product it should produce in order to maximize net income? a. $48,000 b....
You must decide how many units each of two products that use the same resources. The products are X and Y The profit for X is $30 and the profit for Y is $33. For Resources 1, 2 and 3 product X requires 2. 1. and 4 hours, respectively. For Resources 1, 2 and 3 product Y requires 3, 2, and 2 hours, respectively. The available hours on Resources 1, 2, and 3 are 270,300, and 200, respectively. There are...
Amanager must decide on the mix of products to produce for the coming week. Product Arequires three minutes per unit for molding, two minutes per unit for painting, and one minute for packing. Product B requires two minutes per unit for molding, four minutes for painting, and three minutes per unit for packing. There will be 550 minutes available for molding, 500 minutes for painting, and 450 minutes for packing. Product A has a contribution of $1.50 per unit and...
Question 7 Maplewood Company must decide whether to make or buy some of its components. The costs of producing 61,000 switches for its generators are as follows. Direct materials Direct labour $30,500 42,090 Variable overhead Fixed overhead $57,950 60,390 Instead of making the switches at an average cost of $3.13 $190,930 = 61,000), the company has an opportunity to buy the switches at $2.93 per unit. If the company purchases the switches, all the variable costs and one-third of the...
Blossom Company must decide whether to make or buy some of its components. The costs of producing 65,700 switches for its generators are as follows. Direct materials $31,000 Direct labor $34,229 Variable overhead $45,900 Fixed overhead $84,000 Instead of making the switches at an average cost of $2.97 ($195,129 = 65,700), the company has an opportunity to buy the switches at $2.71 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs...
Flint Company must decide whether to make or buy some of its
components. The costs of producing 62,600 switches for its
generators are as follows.
Direct materials
$29,000
Variable overhead
$44,400
Direct labor
$28,644
Fixed overhead
$82,000
Instead of making the switches at an average cost of $2.94
($184,044 ÷ 62,600), the company has an opportunity to buy the
switches at $2.69 per unit. If the company purchases the switches,
all the variable costs and one-fourth of the fixed costs...
5. 8 The management of a company must decide between two proposals. The following information is available Investment Net Cash Inflow at the End Of Proposal A Now Year 1 Year 2 Year 3 80000 95400 39000 12000 100000 35000 58000 80000 Advise management regarding the proposal that should be selected, assuming that on projects of this type the company can earn ji 14%
5. 8 The management of a company must decide between two proposals. The following information is...
Maplewood Company must decide whether to make or buy some of
its components. The costs of producing 59,900 switches for its
generators are as follows.
Direct materials
$31,148
Variable overhead
$53,311
Direct labour
41,331
Fixed overhead
59,301
Instead of making the switches at an average cost of $3.09
($185,091 ÷ 59,900), the company has an opportunity to buy the
switches at $2.89 per unit. If the company purchases the switches,
all the variable costs and one-third of the fixed costs...
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