Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours. Product A $ 53.00 Product B $ 63.00 Product C $ 93.00 10.50 26.20 9.00 2.50 9.00 4.00 18.20 9.00 2.00 Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A Product B Product C Required: 11,000 units 10,000 units 6,000 units Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number. Product Units Produced

Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours. Product A $ 53.00 Product B $ 63.00 Product C $ 93.00 10.50 26.20 9.00 2.50 9.00 4.00 18.20 9.00 2.00 Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A Product B Product C Required: 11,000 units 10,000 units 6,000 units Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number. Product Units Produced

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A Product B Product C Product A $ 48.00 15.20 15,000 units 9,000 units 6,000 units 4.00 2.00 Product B $ 58.00 11.75 4.00 2.50 Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product C $88.00 23.20 4.00 4.00 Required: Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number. Product Units Produced
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price $ 47.00 $ 57.00 $ 87.00 Variable costs per unit 22.70 12.00 38.70 Fixed costs per unit 9.00 9.00 9.00 Required number of labor hours 1.50 2.50 3.00 Cordova currently is limited to 58,500 labor hours per month. Cordova’s marketing department has determined the following demand for its products: Product A 14,000 units Product B 9,000 units Product C 10,000 units Required:Given the company’s limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number.) Product Units Produced
Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $ 42.00 Product B $ 52.00 Product C $ 82.00 13.25 35.20 4.00 2.50 4.00 3.00 19.20 4.00 1.50 Cordova currently is limited to 45,000 labor hours per month. Cordova's marketing department has determined the following demand. for its products: Product A 16,000 units Product B Product C Required: 7,000 units 5,000 units Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number. Product C B A Units Produced
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price $ 52.00 $ 62.00 $ 92.00 Variable costs per unit 17.60 10.75 25.60 Fixed costs per unit 8.00 8.00 8.00 Required number of labor hours 2.00 2.50 4.00 Cordova currently is limited to 60,000 labor hours per month. Cordova’s marketing department has determined the following demand for its products: Product A 10,000 units Product B 10,000 units Product C 6,000 units Required:Given the company’s limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number.) products units produced
Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Bruce Corporation makes your products in a single facility. These products have the following unit product COSTS. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units. Multiple Choice 10,800 9,800 10,500 A $ 19.90 12.20 12,000 1.60 10.80 $44.50 Products B $15.20 8.70 2.10 11.90 $37.90 C D $20.80 $ 23.20 10.50 7.40 2.00 8.80 $42.10 Products A B 1.20 0.70 $59.30 $ 51.70 $ 3.60 $ 1.50 4,000 2,000 The grinding machines are potentially the constraint in the production facility. A total of 9,000 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products? C 0.60 $59.50 $2.20 4,000 2.10 10.70 $43.40 D 0.60 $ 55.60 $ 3.60 2,000
A tile manufacturer has supplied the following data: Boxes of tiles produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income a. b. $ $ What is the company's unit contribution margin? $0.86 per unit $2.35 per unit $4.10 per unit $1.75 per unit C. d. 520,000 2,132,000 650,000 $ 464,000 $ 260,000 $ 312,000 $ 446,000
Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per Unit Fixed Costper Unit DL Hoursper Unit A $ 4.00 $ 1.00 $ 2.00 2 B $ 3.50 $ 0.50 $ 2.00 2 C $ 6.00 $ 2.00 $ 3.00 3 The objective function for a linear program to maximize contribution margin from the set of three products is: Multiple Choice Z = $3A + $2.50B + $5C. Z = A + B + C. Z = A + $0.50B + $2C. Z = $3A + $3B + $4C. Z = $4A + $3.50B + $6C.
Sheridan Company manufactures and sells two products. Relevant per unit data concerning each product follow. Selling price Variable costs Machine hours (a) Product Basic $42.0 $24.0 0.5 Deluxe $55.0 $29.4 x Your answer is incorrect. 0.8 Compute the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic 40 $ Deluxe 51 F
ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Expected sales (in cases) Selling price per case. Direct labor hours Machine hours Receiving orders Packing orders Material cost per case $49 Direct labor cost per case $12 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Fixed $ Direct labor benefits Machine costs Receiving department Packing department Total costs Rose Violet 51,000 10,200 $100 36,750 9,250 52 98 All depreciation 211,000 212,500 149,000 $572 500 $83 6,400 2,700 24 51 $44 $8 Variable. $215,750 215,750 $431,500
Chapter 25 eBook 4 Show Me How Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70,800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit egual to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 v b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 х%