In order to maximize profit which product mix should pushed

Reference no: EM13231408

The Morton Company produces and sells two products, A and B. Following financial data on the products is available:

Product A Product B
Selling price $10.00 $12,00
Variable costs $5.00 $10.00
Fixed costs $2000.00 $600.00
Machining time 0.5 hrs 0.25 hrs (only need for part d)

a. If these products are sold in the ratio of 4A for 3B, what is the break-even point?
b. If the product mix has changed to 5A for 5B, what would happen to break-even point?
c. In order to maximize the profit, which product mix should be pushed?

d. If both products must go through the same manufacturing machine and there are only 30,000 machine hours available per period, which product should be pushed?

Reference no: EM13231408

Questions Cloud

What is the increment in income tax caused by the purchase : A small manufacturing company has an estimated annual taxable income of $95,000. Due to an increase in business, the company is considering purchasing a new machine that will generate additional before-tax annual revenue of $50,000

Define the temperature of the gas in the bulb : A mercury nanometer contains 2 g of Ar. A burner heats it to P-ext. at 760 torr. What is the Temperature of the gas in the bulb when the total volume is 3 L and H=76mm?

Manage project risk using proper writing mechanics : Describe to your project sponsor how you intend to develop and implement an infrastructure of your project's management systems, focusing on at least two (2) significant unk-unks.

Decide goal with respect to customer- relationship building : On-Time Technology Products recognizes that they should do more to connect with customers after a sale.

In order to maximize profit which product mix should pushed : The Morton Company produces and sells two products, A and B. Following financial data on the products is available: Product A Product B Selling price $10.00 $12,00 Variable costs $5.00 $10.00 Fixed costs $2000.00 $600.00 Machining time 0.5 hrs 0.25 h..

What purposes do cpus, memory and i-o devices : What purposes do CPUs, memory and I-O devices individually serve in a computer system

Compare and contrast the benefits of using qualitative : Compare and contrast the benefits of using qualitative and quantitative data collection methods as they apply to organizational development (OD).

Compute the molar solubility of the compound in water : Use the Ksp values in the table 16.2 to calculate the molar solubility of the following compound in pure water. Before Addition ~0.00mol 0.100mol 0.100mol

Find benefits dominos realize from adopting that structure : Evaluate alternative structures to determine which one would be most appropriate for Domino's to consider and discuss likely benefits Dominos would realize from adopting that structure. Provide specific examples.

User Account

All Pages