Questionoffice supply companyosc manufactures 2 products a

Assignment Help Financial Accounting

Reference no: EM13349035

Question:

Office Supply Company(OSC) manufactures 2 products, a desk tray and a pen box. Both products are produced on two equal machines each of which can operate 80 hours per week. One has broken down and will take weeks to repair. Data relating to these products is as given:

Desk

Tray Pen

Box

Selling Price 10.00 6.00

Expected weekly sales (units) 4,000 9,000

Total Variable Costs per unit 6.00 4.00

Total Fixed Costs per unit (based on expected production) 1.00 .75

Direct Labor Hours required to produce one unit .10 .25

Number of units that can be made per Machine Hour 50 150

a) When both machines are working how many of each unit should OSC produce?

-under regular circumstances produce desk trays first as they have the largest CM/unit

Note - total MH's available are 2 machines * 80 hrs = 160 MH's

b) What could be the expected Operating Income per week?

c) With only one machine working many of each unit could OSC produce?

-in this case OSC could produce pen boxes first to maximize profits.

d) What could be the expected operating income per week?

Reference no: EM13349035

Questions Cloud

Question 1 a tourism organisations strive to provide : question 1 a tourism organisations strive to provide service quality to their customers. explain the benefits that they

Question 1sukis gift shoplast year suki opened a gift shop : question 1sukis gift shoplast year suki opened a gift shop in her small town. the town is a popular summer tourist

Questionsuppose that you are the project leader for the : questionsuppose that you are the project leader for the campus housing system that you have been developing however as

Question nbspthe village of harris issued 5000000 in 6 : question nbspthe village of harris issued 5000000 in 6 percent general obligation tax supported bonds on july 1 2011 at

Questionoffice supply companyosc manufactures 2 products a : questionoffice supply companyosc manufactures 2 products a desk tray and a pen box. both products are produced on two

Questionmake an xml file in visual studio that contains the : questionmake an .xml file in visual studio that contains the exact same information. name files

Question northern food processors nfp gives mango-banana : question northern food processors nfp gives mango-banana fruit juice. all materials are considered direct costs

Questionconsider following statements-double num1 num2 : questionconsider following statements-double num1 num2 num3int int1 int2 int3double valuenum1 5.0 num2 6.0 num3

Question q1 a couple age 50 52 file a joint return for 2012 : question q1 a couple age 50 52 file a joint return for 2012 the couple claims their son as a dependent. the wife is

User Account

All Pages