Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Barlow Company manufactures three products: A, B and C. The selling price, variable costs and contribution margin for one unit of each product follow:
Product
A
B
C
Selling price
$137.00
$190.00
$185.00
Less: Variable expenses:
Direct materials
23.00
79.00
58.00
Direct labour
14.80
Other variable expenses
67.10
42.00
71.75
Total variable expenses
104.90
135.80
144.55
Contribution margin
$32.10
$54.20
$40.45
The same raw material is used in all three products and costs $4 per kilogram. Barlow Company has only 9,500 kilograms of material on hand and will not be able to obtain any more material for several weeks due to a strike in its supplier's plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. Direct labour costs $21 per hour.
Required -
1. Compute the amount of contribution margin that will be obtained per kilogram of material used in each product.
2. Which orders would you recommend that the company work on next week-the orders for product A, product B or product C?
3. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. If there is unfilled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an additional kilogram of materials?
4. Assume that direct labour becomes a constraint instead of direct materials. How will your answer to Requirement (2) above change?
You are the audit manager at Deloitte and you are finalising the audits for 30 June 2021. Identify the type of auditor's report to be issued
What transfer price(s) will lead the manager of the peanut division to act in a manner that will maximize company profits? Compute the annual gross profit
Describes the inter relations between the expected rate of return on the new venture, the firm's cost of capital, and the department's present ROI?
MS6010- The sales projection is for 5,000 units, 3,500 units need to be in stock at the end of the period and 1,500 units are in stock at the beginning of the period. What will the production budget show in costs for that period?
Explain why evaluation in terms of ROI may lead managers to delay purchases of equipment that, in the long run, will be needed to remain competitive.
What aspect of this approach seem to be effective and/or ineffective? What might you recommend to improve the process for managing risk
If both division are to be treated as investment centers and their performance evaluated by the ROI formula, what transfer price would you recommend?
Write three well composed paragraphs where you use, as an example, a company that operates where you live and describe how the job order costing
Net sales are $272300, beginning total assets are $714000, and the asset turn over is 5. What is the ending total asset balance and provide example?
Cravings for Cakes Pty Ltd manufactures a wide range, Write a report for Craving that outlines the benefits, costs and limitations of Activity- based costing.
Find What is the total cost per hour of use for the DVD Division assuming budgeted usage is the allocation base and a single-rate method is used?
Revise the report assuming the company drops the economy grade. (Enter loss using either a negative sign preceding the number
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd