Question

LeBron Corporation manufactures two products, XX and YY.  These products use the same set of machines. Some...

LeBron Corporation manufactures two products, XX and YY.  These products use the same set of machines. Some unanticipated repairs have led to a sharp reduction in available machine time for October 2016.  A maximum of 5,100 machine hours is available and LeBron can potentially sell as many as 1,500 units of XX and 1,500 units of YY this month.  Other relevant details are provided below:

                                                                                               XX                    YY

                        Selling price per unit                                $15.00               $20.00

                        Variable costs per unit                                  9.00                 15.00

                        Amount of machine time needed per unit          3                       2

The contribution margin ratios for XX and YY, respectively, are:

40% and 25%

20% and 25%

18% and 10%

60% and 75%

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer: 40% and 25%

Explanation

Contribution margin ratio = (Selling price per unit - Variable costs per uni) / Selling price per unit

Contribution margin ratios for XX = (15 - 9) / 15

= 40%

Contribution margin ratios for YY = (20 - 15) / 20

= 25%

Add a comment
Know the answer?
Add Answer to:
LeBron Corporation manufactures two products, XX and YY.  These products use the same set of machines. Some...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • LeBron Corporation manufactures two products, XX and YY. These products use the same set of machines....

    LeBron Corporation manufactures two products, XX and YY. These products use the same set of machines. Some unanticipated repairs have led to a sharp reduction in available machine time for October 2016. A maximum of 5,100 machine hours is available and LeBron can potentially sell as many as 1,500 units of XX and 1,500 units of YY this month. Other relevant details are provided below:                                                                                                XX                    YY                         Selling price per unit                                $15.00               $20.00                         Variable costs per unit                                  9.00                 15.00                         Amount of machine time needed per...

  • Situation Three Rutro Corp. makes three products in a single facility. These products have the following...

    Situation Three Rutro Corp. makes three products in a single facility. These products have the following unit product costs:                                                                      Product A                Product B                    Product C Direct material                                                $32.00                         $40.00                         $42.00 Direct labor                                                     22.00                         20.00                         16.00 Variable manufacturing overhead                       6.00                             8.00                           15.00 Fixed manufacturing overhead                         29.00                           38.00                         28.00     Unit cost                                                         $89.00                         $106.00                      $101.00 Additional data concerning these products are listed below:                                                                      Product A                  Product B            Product C Mixing minutes...

  • 4. A company manufactures two products, X and Y by using three machines A, B, and...

    4. A company manufactures two products, X and Y by using three machines A, B, and c Each of the products has to be processed on each machines. The Table below shows (a) the hours required on each machine to produce one unit of each of the products (b) the total number of hours available on each machine (c) the profit made on one unit of each product. It is assumed that the profit is directly proportional to the number...

  • A company makes two products, P and Q. They use two machines, A and B to make these two products. Each unit of P requir...

    A company makes two products, P and Q. They use two machines, A and B to make these two products. Each unit of P require of processing time on machine A and processing time on machine A and machine B is available for To have the most CM, how much of each product should be made per week. Formulate and solve by hand. You can take a picture of your work and upload it or type it all out in...

  • Holton Company makes three products in a single facility. Data concerning these products follow: Product A...

    Holton Company makes three products in a single facility. Data concerning these products follow: Product A B C Selling price per unit $ 150.90 $ 76.30 $ 170.90 Direct materials $ 65.60 $ 42.50 $ 102.80 Direct labor $ 47.20 $ 13.50 $ 30.80 Variable manufacturing overhead $ 9.00 $ 4.50 $ 14.30 Variable selling cost per unit $ 24.40 $ 3.30 $ 8.80 Mixing minutes per unit 43.30 4.00 4.00 Monthly demand in units 3,000 1,000 2,000 The mixing...

  • Holton Company makes three products in a single facility. Data concerning these products follow: Product A...

    Holton Company makes three products in a single facility. Data concerning these products follow: Product A B C Selling price per unit $ 150.90 $ 76.30 $ 170.90 Direct materials $ 65.60 $ 42.50 $ 102.80 Direct labor $ 47.20 $ 13.50 $ 30.80 Variable manufacturing overhead $ 9.00 $ 4.50 $ 14.30 Variable selling cost per unit $ 24.40 $ 3.30 $ 8.80 Mixing minutes per unit 43.30 4.00 4.00 Monthly demand in units 3,000 1,000 2,000 The mixing...

  • A factory manufactures two products, each requiring the use of three machines. The first machine can...

    A factory manufactures two products, each requiring the use of three machines. The first machine can be used at most 70 hours; the second machine at most 40 hours; and the third machine at most 90 hours. The first product requires 2 hours on machine 1, 1 hour on machine 2, and 1 hour on machine 3; the second product requires 1 hour on machines 1 and 2 and 3 hours on machine 3. The profit is $40 per unit...

  • product costs: Product A Product B Product C $32.00 $40.00 Direct material $42.00 22.00 20.00 Direct...

    product costs: Product A Product B Product C $32.00 $40.00 Direct material $42.00 22.00 20.00 Direct labor 16.00 Variable manufacturing overhead 6.00 8.00 15.00 29.00 38.00 Fixed manufacturing overhead 8.00 $89.00 $106.00 Unit cost $101.00 Product B Product C 2 Additional data concerning these products are listed below: Product A Mixing minutes per unit 3 Selling price per unit $105.00 Variable selling cost per unit $10.00 Monthly demand in units 5,500 $124.00 130.00 $8.00 $9.00 4,300 3.800 The mixing machines...

  • question 14 solve Boylan Company manufactures two products-toaster ovens and bread machines. The following data are...

    question 14 solve Boylan Company manufactures two products-toaster ovens and bread machines. The following data are available: Toaster Ovens Bread Machines Sales price $70 $170 Variable costs $30 $60 Boylan can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Boylan's production capacity is 1,600 machine hours per month. Marketing limitations indicate that Boylan can sell a maximum of 6,100 toasters and 4,100 bread machines per month. Which product and how many units should the...

  • Bruce Corporation makes four products in a single facility. These products have the following unit product...

    Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.40 $ 10.30 $ 11.10 $ 10.70 Direct labor 19.50 27.50 33.70 40.50 Variable manufacturing overhead 4.40 2.80 2.70 3.30 Fixed manufacturing overhead 26.60 34.90 26.70 37.30 Unit product cost $ 64.90 $ 75.50 $ 74.20 $ 91.80 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT