Question

Styles 2 3 CHAPTER 12 FOUNDATIONAL PROBLEM The information in the first paragraph in the text is to be used to solve problems 1 through 15. The information regarding unit costs is substituted for the information given below. ALFA BETA Variable costs: Direct material. $27 $9 Direct labor... 21 18 Variable manufacturing overhead.. 6 Variable selling expenses.. 10 6 $67 $39 Total per unit variable cost I 18 Traceable fixed manufacturing overhead cost 15 12 14 Common fixed cost. The per unit fixed costs are based on production and sales of 100.000 units.

Answer 1

12		Alpha	Beta
	Selling price per unit	$      120	$            80
	Direct materials	$       27	$              9
	Direct labor	$       21	$            18
	Variable manufacturing overhead	$         9	$              6
	Variable selling expenses	$       10	$              6
	Total Variable Cost	$       67	$            39
	Contribution Margin per unit (A)	$       53	$            41
	Pounds of raw material per unit (27/6 ; 9/6) (B)	4.5	1.5
	Contribution Margin per pound (A/B)	$ 11.78	$ 27.33
13	Product	Units	Raw Material Per unit	Total raw Material
	Alpha	8,889	4.5	40,000
	Beta	80,000	1.5	120,000
			Total	160,000
14	Maximum contribution margin(8889*53+80000*41)		$    3,751,117
15	Maximum Amount per pound (6+11.78		$           17.78