Particulars | Service | |
A | B | |
Revenue | 38 | 34 |
Less: Variable cost | -14 | -16 |
Contribution per unit | 24 | 18 |
Labor hour required per unit | 3 | 2 |
Contribution per labor hour | 8 | 9 |
So, any unused capacity should be devoted to Service B, which has 1$ more contribution margin per labor hour than dowes service A.
Service Emphasis The following analysis of selected data is for each of the two services Gates...
Service Emphasis The following analysis of selected data is for each of the two services Gates Corporation provides. Service A Service B Per-service data at 10,000 services Sales price Service costs: Variable Fixed Selling and administrative expenses: Variable Fixed $50 $46 15 6 21 4 3 1 In the Gates operation, labor capacity is the company's constraining resource. Each unit of A requires 3 hours of labor, and each unit of B requires 2 hours of labor. Assuming that all...
Service Emphasis The following analysis of selected data is for each of the two services Rockville Corporation provides. Service G Service H Per-unit data at 10,000 services Sales price $28 $15 Service costs: Variable 11 7 Fixed 6 4 Selling and administrative expenses: Variable 5 2 Fixed 3 1 In the Rockville's operation, labor capacity is the company's constraining resource. Each unit of G requires 3 hours of labor, and each unit of H requires 1 hours of labor. Assuming...
Service Emphasis The following analysis of selected data is for each of the two services Gates Corporation provides. Service A Service B Per-service data at 10,000 services Sales price $27 $23 Service costs: Variable 7 8 Fixed 6 4 Selling and administrative expenses: Variable 5 3 Fixed 3 1 In the Gates operation, labor capacity is the company's constraining resource. Each unit of A requires 3 hours of labor, and each unit of B requires 2 hours of labor. Assuming...
Question 3 Incomplete answer Marked out of 2.00 P Flag question Service Emphasis The following analysis of selected data is for each of the two services Gates Corporation provides. Service A Service B $29 $25 - Per-service data at 10,000 services Sales price Service costs: Variable Fixed Selling and administrative expenses: Variable Fixed 15 6 14 4 - m In the Gates operation, labor capacity is the company's constraining resource. Each unit of A requires 3 hours of labor, and...
Conroy Company manufactures two products-B100 and A200. The company provided the following information with respect to these products: Estimated customer demand (in units) Selling price per unit Variable expenses per unit B100 2,800 $ 1,200 $ 700 A200 2,000 $2,100 $1,200 The company has four manufacturing departments-Fabrication, Molding, Machining, and Assemble & Pack. The capacity available in each department (in hours) and the demands that one unit of each of the company's products makes on those departments is as follows:...
Conroy Company manufactures two products-B100 and A200. The company provided the following information with respect to these products: Estimated customer demand (in units) Selling price per unit Variable expenses per unit B100 2,800 $ 1,200 $ 700 A200 2,000 $2,100 $1,200 The company has four manufacturing departments-Fabrication, Molding, Machining, and Assemble & Pack. The capacity available in each department (in hours) and the demands that one unit of each of the company's products makes on those departments is as follows:...
Limited Resource Decisions Luxury Auto Care Company offers three different service packages (A, B, and C) to its customers. These packages vary from a complete detailing of the automobile (wash, wax, carpet shampoo, etc.) to a simple hand wash. A limitation of 120 labor hours per week prevents Luxury from meeting the demand for its services. Information for the three service packages is as follows: A B C Unit selling price $100 $80 $50 Unit variable costs (60) (35) (25)...
Required:1. How many direct labor hours are used to manufacture one unit of each of the company’s five products?2. How much variable overhead cost is incurred to manufacture one unit of each of the company’s five products?3. What is the contribution margin per direct labor-hour for each of the company’s five products?4. Assuming that direct labor-hours is the company’s constraining resource, what is the highest total contribution margin that the company can earn if it makes optimal use of its...
The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Product Debbie Trish Sarah Mike Sewing kit Demand Selling Next year Price (units) per Unit 64,000 $22.00 56,000 $ 8.00 49,000 $38.50 45,600 $ 13.00 339,000 $ 9.40 Direct Materials $4.10 $2.50 $8.54 $3.40 $4.60...
Brun Products, located in Ann Arbor, Michigan, produces two lines of electric toothbrushes: Deluxe and Standard. Because Bruncan sell all the toothbrushes produces, the owners we expanding the plant. They re deciding which product line to emphasize. To make this decision, they assemble the following data (Click the icon to view the data) After expansion, the factory will have a production capacity of 4,500 machine hours per month. The planten manufacture ether 2 Standard electric toothbrushes or 28 Delure electric...