Pasadena Corporation produces three products, and currently has a shortage of machine hours since one of its two machines is down;only 450 hours are available this month. The selling prices, costs, and labor requirements of the three products are as follows:Sales priceVariable cost per unitMachine hours per unitRequired:Product A$ 10.25Product B$ 9.00Product C$ 5.001.75$ 4.001.00$ 2.50$ 2.000.25a. What is the contribution margin per unit for each product?b. What is the contribution margin per machine hour for each product?c. Assume Pasadena has unlimited demand for each product. Which product should Pasadena focus on producing?Complete this question by entering your answers in the tabs below.Required A Required B Required CWhat is the contribution margin per direct labor hour for each product?Note: Round your intermediate calculations to 2 decimal places.ContributionMargin perMachine HourProduct AProduct BProduct C< Required ARequired C >

MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…

Answered: Pasadena Corporation produces three…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 62P

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Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company currently has a shortage of machine hours since one of its two machines is down; only 360 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Variable cost per unit Machine hours per unit Demand (units) Large Mouth (Product A) $ 23.00 $ 12.50 0.75 348 Required A Complete this question by entering your answers in the tabs below. Small Mouth (Product B) $9.00 $5.00 0.25 448 Required: a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced while the machine is down to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources? Required B Required C In what order should Pasadena prioritize production of the products?
Pasadena Corp produces three products, and currently has a shortage of machine hours since one of its two machines is down-only 28 300 hours are available this month. The selling price, costs, and labor requirements of the three products are as followS: Product B $14.00 $ 6.00 2.00 Prodoct C Balling price Variable per mit Kachine hours par mit Frodact A $5.25 $5.00 $4.25 $3.00 1.25 0.25 4 What is the contribution margin per unit for each product? (Round your answers to 2 decimal places.) Centre PraducA Producd B Praducd C & What is the contribution margin per machine hour for each product? (Round your answers to 2 decimal places.)
Pasadena Corporation produces three products, and currently has a shortage of machine hours since one of its two machines is down; only 450 hours are available this month. The selling prices, costs, and labor requirements of the three products are as follows: Product A Product B Product C Sales price $ 10.25 $ 9.00 $ 2.50 Variable cost per unit $5.00 $ 4.00 $ 2.00 Machine hours per unit 1.75 1.00 0.25 Required: What is the contribution margin per unit for each product? What is the contribution margin per machine hour for each product? Assume Pasadena has unlimited demand for each product. Which product should Pasadena focus on producing?
Pinter Corporation produces three products and is currently short on machine hours since one of its two machines is down; only 880 machine hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Product A $ 9.00 Product B Product C $ 7.00 $ 9.00 Variable cost per unit Machine hours per unit $ 7.50 $ 6.00 0.75 0.25 $ 6.00 1.00 Demand (units) 700 610 How many of each product should be produced while the machine is down to maximize profit? 800
Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company is currently facing a labor shortage; only 4,800 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Variable cost per unit Direct labor hours per unit Demand (units) Large Mouth (Product A) $ 70.00 $ 53.00 2.1 1,200 Small Mouth (Product B) $ 38.00 $ 19.00 Required A Required B Required C Complete this question by entering your answers in the tabs below. 3.3 1,700 Required: a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced during the labor shortage to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources? In what order should Hanson prioritize production of the products? Required A Mini Mouth (Product C) $ 52.00 $48.00 Required B > 1.7…
Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company is currently facing a labor shortage; only 3,300 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price: Variable cost per unit. Direct labor hours per unit Demand (units) Large Mouth (Product A) $ 62.00 $43.00 1.8 1,600 Small Mouth (Product B) $ 39.00 $ 20.00 2,600 Complete this question by entering your answers in the tabs below. Required: a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced during the labor shortage to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources? Required A Required B Required C In what order should Hanson prioritize production of the products? $ 50.00 $ 40.00 1.7 1,100
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D E F Selling price $199.35 $311.50 $262.70 Direct labor costs 37.10 107.10 43.40 Other variable costs 96.00 82.00 148.00 The company has 2,100 hours of labor available to build inventory in anticipation of the company’s peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $14. Determine the contribution margin per direct labor hour. (Round intermediate calculation and final answers to 2 decimal places, e.g. 52.75.) Product D Product E Product F Contribution margin per direct labor hour $ $ $

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