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All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product:
|
Model A |
Model B |
Model C |
Selling price |
$22 |
$30 |
$35 |
Direct materials costs |
$2 |
$5 |
$8 |
Direct labor costs ($15 per labor hour) |
$15 |
$10 |
$14 |
Variable support costs ($3 per machine hour) |
$3 |
$8 |
$6 |
Fixed support costs |
$100 |
$100 |
$100 |
Assuming that the company is constrained on machine hours, and all units produced can be sold, then which model is the most profitable?
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- All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product: Model A Model B Model C Selling price $ ? $50 $55 Direct materials costs $5 $5 $5 Direct labor costs ($15 per labor hour) $15 $15 $30 Variable support costs ($3 per machine hour) $3 $6 $9 Fixed support costs $10 $10 $10 Assuming that machine hours are limited (i.e., this is the constrained resource), at what price does Model A become the most profitable model to produce?All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product: Selling price Direct materials cost Direct labor costs ($15 per labor hour) Variable support costs ($4 per machine hour) Fixed support costs Select one: O a. Any price above $42 O b. Any price above $56 O c. Any price above $66 d. None of these options are correct. e. Any price above $28 Model A Model B Model C $? $66 $60 $6 $6 $18 $36 $8 $12 $12 $12 Assuming that machine hours are limited (i.e., this is the constrained resource), at what price does Model A become the most profitable model to produce? O O $6 $18 $4 $12Paul's Pumps manufactures three different product lines: Model A, Model B, and Model C. Plenty of market demand exists for all models.The table below reports the prices and costs per unit of each product. Model A Model B Model C Selling price $50 $60 $70 Direct materials costs $6 $6 $ 6 Direct labor costs ($12 per labor hour) $12 $12 $24 Variable support costs ($4 per machine hour) $4 $8 $8 Fixed support costs $10 $10 $10 Assuming that machine hours are limited (i.e., this is the constrained resource), which model is the most profitable to produce? Select one: a. Model B X b. Model A and B would be equally profitable c. Model A d. Model C
- Answer the following questions using the information below: Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z Selling price $50 $60 $70 Direct materials 6 6 6 Direct labor ($12 per hour) 12 12 24 Variable support costs ($4 per machine-hour) 4 88 Fixed support costs 10 10 10 If there is a machine breakdown, which model is the most profitable to produce? Model X Model Y Model Z Models Y and ZPolaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.Joe's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: M.X M.Y M.Z Selling price $50 $60 $70 Direct materials $6 $6 $6 Direct labor ($12 per hour) $12 $12 $24 Variable support costs ($4 per machine-hour) $4 $8 $8 Fixed support costs $10 $10 $10 Which model has the greatest contribution margin per unit?
- Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,020 remotes is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Frannie is approached by Lincoln Company, which offers to make the remotes for $18 per unit. Required: Cost 10 $ 65,130 $ 55,110 $ 30,060 $ 50,100 $ 200,400 1. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 2. Compute the difference in cost per unit between making and buying the remotes if $20,040 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 3. What is the change in net income if fixed cost of $20,040 can be avoided and Frannie could rent out the factory space no longer in use for $20,040? Complete this question by entering your answers in the tabs below. Required 1 Required…Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: Product Sales Priceper Unit Variable Costper Unit Model 101 $275 $185 Model 201 355 220 Model 301 405 240 The current product mix is 4:3:2. The three models share total fixed costs of $328,500. A. Calculate the sales price per composite unit. Sales price $fill in the blank 363349fb9022017_1 per composite unit B. What is the contribution margin per composite unit? Contribution margin $fill in the blank 363349fb9022017_2 per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars $fill in the blank 363349fb9022017_3 Break-even point in units fill in the blank 363349fb9022017_4 units D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".…Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: Question Content Area 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ___________ : ______________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans _______ Break-even table fans ______ 3. Prepare a contribution-margin-based income…
- Dynondo's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y $56 $69 6 6 13 4 15 00 Selling price Direct materials Direct labor ($13 per hour) Variable support costs ($4 per machine-hour) Fixed support costs 13 8 15 Model Z $71 6 26 8 15 Which model has the greatest contribution margin per unit? Model X Model Y Model Z Both Model X and Model Y have the highest and same contribution margin per unitManatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: Product Sales Priceper Unit Variable Costper Unit Model 101 $280 $180 Model 201 345 220 Model 301 395 250 The current product mix is 4:3:2. The three models share total fixed costs of $532,500. A. Calculate the sales price per composite unit. Sales price ? per composite unit B. What is the contribution margin per composite unit? Contribution margin ? per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars ? Break-even point in units ? unit D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Model 101 Model 201 Model 301 Total Sales Variable Costs Model 101 Model 201 Model 301…Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below: Selling price per unit Variable cost per unit Required 1 Complete this question by entering your answers in the tabs below. Required 2 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Required: 1. If the total time available on the plastic injection molding machine is the constraint, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If a severe shortage of plastic pellets required the company to cut back production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4. Which product offers the most…