User Account

All Pages

How many of each product should Ombrelloni Felici produce

Assignment Help Accounting Basics
Reference no: EM132641624

Question - Ombrelloni Felici (OF) has a division of folding umbrellas which can produce two different types of umbrellas, the Ombrelli Divertenti, which is made of polyester fabric, and the Ombrelli Sicuri, which is made of flameresistant fabric. The company has 10,000 machine hours available to produce these products.

Table - Straw Production

Per batch Ombrelli Divertenti Ombrelli Sicuri

Sales price $2.00 $6.00

Variable expenses $0.50 $3.00

Contribution margin $1.50 $3.00

Contribution margin ratio 75% 50%

One batch of Ombrelli Divertenti requires 5 machine hours and one batch of Ombrelli Sicuri requires 8 machine hours.

Required - How many of each product should Ombrelloni Felici (OF) produce for maximizing the profit of the division of folding umbrellas and why? Use your calculations for supporting your argument and showing the maximum contribution margin (i.e., total revenues minus variable expenses) the division of folding umbrellas can achieve.

Reference no: EM132641624

Questions Cloud

What is meant by a product contribution margin ratio : What is meant by a product's contribution margin ratio explain with example and briefly explain
Malware developers to disguise their code : Submit a report that discusses the techniques used by malware developers to disguise their code and prevent it from being analyzed.
Automated attendance system using facial recognition system : Develop skills on demonstration. Students will demonstrate their work to the supervisor. Student will introduce the project and show system model
Which part lacking from discussions on history of slavery : Almost two centuries later, what part of this section of the Narrative do you think is most lacking from our discussions on the history of slavery?
How many of each product should Ombrelloni Felici produce : How many of each product should Ombrelloni Felici (OF) produce for maximizing the profit of the division of folding umbrellas and why
Bitcoin economics : Explain why some organizations are accepting and other organizations are rejecting the use of Bitcoins as a standard form of currency.
What must be the credit to adjust Net Income : If the errors were discovered in January 2018, what must be the credit to adjust 2017 Net Income/ Retained Earnings
What is multifactor authentication : What is multifactor authentication and what are some examples? List 5 reasons to turn on multifactor authentication?
What will be the book value of the equipment : What will be the book value of the equipment at the end of the first year, after the adjusting entries have been prepared and posted

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd