Due to increased demand of plastic in the market delfi

Reference no: EM13570474

1.Lambardi Company sells 3 types of bags. Bag A sells for $16 and has variable cost of $9.00 per unit. Bag B sells for $16 and has variable cost of $12.00 per unit. Bag C sells for $8 and has variable costs of $6.00 per unit. Lambardi sells in a mix of 2 units of A, 3 units of B and 5 units of C. What is the weighted average contribution margin per unit for Lambardi?

2.Product A has a contribution margin per unit of $500 and required 2 hours of machine time. Product B has a contribution margin per unit of $1,000 and requires 5 hours of machine time. How much of each product should be produced given there are 100 hours of available machine time?

	50 units of A and 25 units of B.
	25 units of B.
	50 units of A.
	None of the above

Delfi Company produces two models of seats, Toro and Prep. Information regarding these products for May follows:

	Toro	Prep
Number of units	3,000	7,000
Sales revenue	$120,000	$140,000
Variable costs	60,000	42,000
Fixed costs	24,000	50,000
Net Income	$36,000	$48,000
Pounds of plastic to produce one bucket	4.0	1.6
Contribution margin per unit	$20	$14

3.Due to increased demand of plastic in the market, Delfi Company can obtain only 9,000 pounds of plastic per month. Delfi can sell as many seats as it can produce of either model. How many of each model should Delfi produce to maximize profit in May considering the constraint?

	Toro: 0; Prep: 4,375
	Toro: 2,250; Prep: 0
	Toro: 1,125; Prep: 2,812
	Toro: 0; Prep: 5,625

4.Abagail Corp. uses activity-based costing system with three activity cost pools. The following information is provided:

Costs: Wages and salaries $ 211,000

Depreciation 108,000

Utilities 119,000

Total $440,000

Activity Cost Pools

Assembly Setting Up Other

Wages and salaries 0.51 30% 10%

Depreciation 0.39 45% 20%

Utilities 0.21 40% 30%

Reference no: EM13570474

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