Maximum amount of total contribution margin

Assignment Help Cost Accounting
Reference no: EM132048532

A. C .Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.

                                                                                       Small        Medium        Large

        Unit selling price                                                 $430              $550          $1,230

        Unit costs:

               Variable manufacturing                            (200)             (320)             (700)

               Fixed manufacturing                                    (50)             (140)             (240)

               Fixed selling and administrative               (90)               (25)             (130)

        Unit profit                                                               $90                $65              $160

        Demand in units                                                    170                130                170

        Machine-hours per unit                                         70                  40                170

The maximum machine-hours available are 6,200 per week.

How much is the maximum amount of total contribution margin possible to the firm in the short run?

Reference no: EM132048532

Questions Cloud

What items are included in manufacturing overhead : Terms synonymous with manufacturing overhead include factory overhead, factory burden, and overhead. What items are included in manufacturing overhead?
What was the average issue price of the common stock shares : Total stockholders' equity $1,236,500. What was the average issue price of the common stock shares? What is the average issue price of preferred stock shares
What are the two factors that must be considered : What are the two factors that must be considered when deciding on an accounting system?
What is the effective annual interest rate on this lending : Suppose you need $19.95 million today and you repay it in seven months. How much interest will you pay?
Maximum amount of total contribution margin : How much is the maximum amount of total contribution margin possible to the firm in the short run?
Record the sale of goods on credit : Prepare journal entries to record the following production activities. Sold $449,000 of goods on credit. Their cost is $152,000
Consideration of healthcare cost benefits : What is the implication of the entanglement between the employers and employees in consideration of healthcare cost benefits?
What are the main steps a company : What are the main steps a company can take to reduce their customer defection rate.
Prepare journal entries to record the overhead costs paid : Prepare journal entries to record the following production activities. Paid overhead costs (other than indirect materials and indirect labor) of $21,000

Reviews

Write a Review

Cost Accounting Questions & Answers

  Computation of financial ratios

Companies in Schlofmans industry typically have the asset mix: cash, 7%; accounts receivable, 15%; inventory, 18%; property, plant, and equipment, 60%.

  Distribution from liquidation of the partnership

Fowler and Ericson share income and losses equally. Determine the amount received by Fowler as a final distribution from liquidation of the partnership.

  Investment after taxes14 is the firms cost of capital tax

investment after taxes14 is the firms cost of capital. tax rate is 40 percent and the firm uses straight line

  Divisional performance measures

Explain the potential benefits of operating a transfer pricing system within a divisionalised company - Calculate comment on the results - Compare and contrast the use of residual income and return on investment in divisional performance measurement..

  Prepare an analysis of the alternatives

Prepare an analysis of the alternatives and make a recommendation to the management of the company of the appropriate course of action.

  Strategy to test compliance with eligibility provisions

Assuming that the auditors consider the amounts involved as indicative of a weakness in internal controls, how, if at all, should that finding affect your report on the program

  Calculate the proceeds of drennen

Calculate the proceeds of Drennen, Inc.'s, bonds on January 1, 2010, assuming that the bonds were sold to provide a market rate of return to the investor.

  Determine total and per-unit activity cost for all products

Determine the total and per-unit activity cost for all three products. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit?

  Questionlangrova inc has the subsequent amounts included

questionlangrova inc. has the subsequent amounts included inits general ledger at december 31 2010.organization costs

  What is the net realizable value of the accounts receivable

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $430,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable?

  Draw a graph of the firms raw material cost

Draw a graph of the firm's raw material cost, showing the total cost at the following production levels: 50,000 kilograms, 100,000 kilograms, and 150,000 kilograms.

  Explain what is zero-based budgeting

Explain what zero-based budgeting is and how it can improve theefficiency of the organization? Zero-based budgeting is the process in which managers can plan an educated guess of his or her projected expenses for a precise time period as if the p..

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!

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