Solution-Calculate the contribution margin per hour of

Calculate the contribution margin per hour of machine time

Assignment Help Cost Accounting

Reference no: EM133520899

Question: Polar Gears Company produces two types of gears, Simple Gears and Deluxe Gears, with unit contribution margins of $2 and $5, respectively. Each gear must spend time on a special machine. The firm owns 10 machines that together provide 25,000 hours of machine time per year. Each Simple Gear requires 0.10 hours of machine time; each Deluxe Gear requires 0.4 hours of machine time.

Required:

A. Calculate the contribution margin per hour of machine time for Simple Gears and for Deluxe Gears

B. If Polar faces only the production constraint (25,000 hours of machine time), how many units of Simple Gears should be produced? And how many units of Deluxe Gears? Also, Calculate the total contribution margin from this product mix.

C. Now suppose that Polar cannot sell more than 200,000 units of each type of gear. How many units of Simple Gears and how many units of Deluxe Gears should be produced?

Reference no: EM133520899

Questions Cloud

What is the proportion of your funds invested in tesla : What is the proportion of your funds invested in Tesla? Please round your answer to 3 decimals. Please do not report the %. For example

How many items of your product will you need to produce : Develop a list of inputs along with their associated costs, such as labor, materials, and overhead. You can research this information, make it up

Determine the financial health of the company : Determine the financial health of the company. Analysis of the "current ratio" Analysis of the "Profitability ratio" Analysis of the Leverage ratio

Explain how your degree path informs your research approach : Determine if there is the potential to employ a mixed methods approach. Explain how your degree path informs your research approach (1-2 cited paragraphs).

Calculate the contribution margin per hour of machine time : Calculate the contribution margin per hour of machine time for Simple Gears and for Deluxe Gears how many units of Deluxe Gears?

What is the current transfer price if the glass division : What is the current Transfer Price if the Glass division like to sell 10,000 units to The Florist Division? Explain.

Which product should be processed beyond split-off point : Which product (s) should be processed beyond the split-off point? Explain with detailed calculations.

What is mcgoose cost of equity : What is McGoose's cost of equity? Suppose that McGoose's is a mature company with dividends growing at a constant rate. The most recent dividend it paid

Create an infographic showing and explaining your results : Create an infographic showing and explaining your results, using any two of the 5 mechanisms of evolution illustrated in the simulations.

User Account

All Pages

Calculate the contribution margin per hour of machine time

Reference no: EM133520899

Reference no: EM133520899

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT