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A company produces products A, B, and C. The company has excess capacity. Products A, B, and C have a contribution margin of 10, 15, and 20, respectively. Products A, B, and C have a contribution margin per hour of 10, 5, and 6.67 per contribution margin per hour, respectively. Assume that the scarce resource for the firm is time, that is if an hour more is spent on producing one more product, there would be an hour less spent on producing another product. The company should produce: a. Product A because it has the highest contribution margin per hour.
b. Product C because it has the highest contribution margin.
c. Either Product A or C because they have the highest contribution margin or contribution margin per hour.
d. The answer cannot be determined because we do not know the number of available machine hours.
Evaluate the price and quantity variances and purpose Direct materials Price Variance Efficiency varianceLabor rate variance Labor Efficiency Variance and pass necessary comments.
Hanson had buildings with a book value of $1,878,000 and a fair value of $2,160,000. What amount should be shown for buildings on the consolidated balance sheet dated December 31, 2011? 106.
What is amount of outstanding checks at the end of May - wrote checks in the amount of $37,000. In June, checks in amount of $50,632 were written.
the rental cost for a large bus is800 and 600 for the small bus compute how many buses of each type should be used for the trip for the least possible cost
Howard Enterprises has a contribution margin ratio of 65% and fixed costs of $15,000. What would sales have to be in order for Howard to earn an after-tax profit of $50,000? The company is in the 40% tax bracket
Find what is the journal entry to record the issuance of bonds on 1 st January, 2010?
f the company decides on a 2- for- 1 split, at what price would you expect the stock to trade immediately after the split goes into effect? Why do you think Fido’s board of directors decided to split the company’s stock?
Compute Walmart inventory turnover and the average days to sell inventory for the fiscal year 2007. Compute value of the 2010 and 2011 inventories using the dollar value LIFO method.
Compute Diekow Production's fixed overhead budget and volume variances for the year. Assume that fixed overhead is applied based on units of product.
Identification of several factors of materiality and Identify several factors considered by an accountant in deciding whether an item is "material."
Compute the current ratio, quick ratio, cash to existing liabilities ratio, over a two-year period. Show and interpret the ratios that you evaluated.
The company allocates any under applied or over applied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
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