Particulars | Product | ||
A | B | C | |
Selling price P.U | 16 | 21 | 21 |
Less: Variable Cost P.U | 7 | 11 | 13 |
Contribution P.U (a) | 9 | 10 | 8 |
Labor hours P.U | 1.0 | 1.5 | 2.0 |
Contribution P.U per labor hours (a/b) | 9 | 6.67 | 4 |
Rank | A | B | C |
Therefore, Rank = A,B,C
The Madison Corporation produces three products with the following costs and selling prices: Product С. $16...
The Gentry Corporation produces three products with the following costs and selling prices: Product A Product B Product C Selling price per unit $10 $12 $18 Variable cost per unit $5 $11 Direct labor hours per unit 2.0 2.5 Machine hours per unit 3.5 2.0 2.5 If Gentry has a limit of 9,000 direct labor hours but no limit on machine hours, then the ranking of the products from the most profitable to the least profitable use of the constrained...
Darren Company produces three products with the following costs and selling prices: Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Machine hours per unit Product X Y $200 $96 120 48 $ 80 $48 2 57 Z $115 69 $ 46 Nt If Darren has a limit of 23,200 direct labor hours but no limit on units sold or machine hours, then the ranking of the products from the most profitable...
Dunford Company produces three products with the following costs and selling prices: Product X Y Z Selling price per unit.............................................. $40 $30 $35 Variable costs per unit........................................... 24 16 20 Contribution margin per unit................................. $16 $14 $15 Direct labor hours per unit..................................... 4 2 3 Machine hours per unit.......................................... 5 7 4 If Dunford has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the three products should...
26. Dell Corp. produces three products and is currently facing a labor shortage - only 20,000 hours are available this month. The selling price, costs, labor requirements, machine requirements and demand of the three products are as follows: A. In what order should Dell prioritize (rank from 1st choice to 3rd) production of the products? To determine priority you first determine what resource is constrained (in this case it is labor hours). Then calculate Unit Contribution Margin. Using unit contribution...
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 325.99 $ 543.25 $ 513.00 Variable cost per unit $ 251.99 $ 420.80 $ 397.65 Time on the constraint (minutes) 4.60 8.30 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in...
5. El Paso Industries produces two products: the Deluxe model and the Ultimate model. Information about the Deluxe model is as follows: Selling price - $14 Direct materials - $5 Direct labor - $7 Labor time required - 1 hour Machine time required - 2 hours Information about the Ultimate model is as follows: Selling price - $25 Direct materials - $8 Direct labor - $14 Labor time required - 2 hours Machine time required - 3 hours El Paso...
Wright Inc. produces three products. Data concerning the selling prices and unit costs of the three products appear below: Product C D E Selling price $ 90 $ 50 $ 85 Variable costs $ 50 $ 40 $ 55 Fixed costs $ 30 $ 7 $ 27 Tapping machine time (minutes) 10 4 5 Fixed costs are applied to the products on the basis of direct labor hours. Demand for the three products exceeds the company's productive capacity. The tapping...
Garson, Inc. produces three products. Data concerning the selling prices and unit costs of the three products appear below: Product F G H Selling price $ 80 $ 60 $ 90 Variable costs $ 50 $ 40 $ 55 Fixed costs $ 25 $ 8 $ 22 Milling machine time (minutes) 10 5 7 Fixed costs are applied to the products on the basis of direct labor hours. Demand for the three products exceeds the company's productive capacity. The milling...
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: Selling price per unit Variable cost per unit Time on the constraint (minutes) GK LQ XK $326.25 $543.51 $502.00 $251.98 $420.79 $397.64 3.30 7.30 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should...
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: Selling price per unit Variable cost per unit Time on the constraint (minutes) GK LQXK $326.21 $543.47 $504.00 $252.00 $420.81 $397.66 3.50 7.50 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be...