4.
Working:
Increase in contribution margin: | ||
Contribution margin (with marketing campaign) | $65,512 | |
Less: Contribution margin (without marketing campaign) | ($62,282) | $3,230 |
Less: Additional fixed cost | ($9,500) | |
Net loss if 600 units of G produced | ($6,270) |
Compute Change in incremental income/(loss)
Change in incremental Income | |
Additional marketing cost | ($8,500) |
Net loss if 600 units of G produced | ($6,270) |
($14,770) |
Edgerron Edgerron Company is able to produce two products, G and B, with the same machine...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $ 80 25 $ 55 0.4 hours 600 units Product B $ 110 66 $ 44 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift for...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $ 132 50 $ 82 0.4 hours 600 units Product B $ 160 96 $ 64 1.0 hours 150 units The company presently operates the machine for a single eight-hour shift for...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $ 132 50 $ 82 0.4 hours 600 units Product B $ 160 96 $ 64 1.0 hours 150 units The company presently operates the machine for a single eight-hour shift for...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available Product G $ 180 Product B $ 210 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month $ 105 S 84 0.4 hours 550 units 1.9 hours 200 units The company presently operates the machine for a single eight-hour shift for 22 working...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $9,000 additional fixed costs per month. (Round hours per unit...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $9,000 additional fixed costs per month. (Round hours per unit...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $150 60 $ 90 0.4 hours 550 units Product B $ 180 108 $ 72 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift for 22...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G $ 150 Product B $ 180 - 60 108 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month $ 90 0.4 hours 550 units $ 72 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G $ 180 75 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product B $ 210 126 $ 84 $ 105 0.4 hours 1.0 hours 600 units 200 units The company presently operates the machine for a single eight-hour shift for...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Product G $ 190 80 Product B $ 220 132 Contribution margin per unit $ 110 $ 88 0 unit Machine hours to produce 1 unit Maximum unit sales per month 0.4 hours 550 units 1.0 hours 200 units The company presently operates the machine for a single eight-hour...