Niva co manufactures three products bales tales and wales

Assignment Help Accounting Basics

Reference no: EM13596649

Niva Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: 55; 78; and 32, respectively. The variable costs for each product are: 20; 50; and 15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.

Assuming that Niva Co. can sell all of the products they can make, what is the maximum contribution margin they can earn per month?

Assuming that Niva produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time. Product demand does not warrant any more production of that product.
What is the maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour?

Reference no: EM13596649

Questions Cloud

Vincent pays 20000 for equipment to use n his trade or : vincent pays 20000 for equipment to use n his trade or business. he pays sales tax of 800 as a result of the purchase.

Tracy owns a nondepreciable capital asset held for : tracy owns a nondepreciable capital asset held for investment. the asset was purchased for 250000 six years earlier and

Pete was recently asked to submit a bid for a new customer : petes pet products is a sole proprietorship owned by pete thompson. the store provides a full-line of pet products

Two years ago prior to a major capital-budgeting decision : two years ago prior to a major capital-budgeting decision see case 4 robert burns the president of greetings inc. faced

Niva co manufactures three products bales tales and wales : niva co. manufactures three products bales tales and wales. the selling prices are 55 78 and 32 respectively. the

An office building and its equipment are insured to : an office building and its equipment are insured to 710000.the present annual insurance premium is 0.85 per 100 of

Complete the manufacturing overhead budget for the year : frizell company is preparing its manufacturing overhead budget for 2011. relevant data consist of the following. units

Walters company produces 15000 pounds of product a and : walters company produces 15000 pounds of product a and 30000 pounds of product b each week by incurring a joint cost of

Sigma corporation applies overhead cost to jobs on the : sigma corporation applies overhead cost to jobs on the basis of direct labor cost. job v which was started and

User Account

All Pages