Rose incorporated manufactures two types of vases

Reference no: EM131136775

Rose Incorporated manufactures two types of vases, small and large. The following per-unit data are available.

Small Vase Large Vase
Sale price $60 $100
Variable costs $35 $60
Machine hours required for 1 vase 1 2

Total fixed costs are $600,000, and Rose Incorporated can sell a maximum of 25,000 units of each type of vase annually. Machine hour capacity is 50,000 hours per year.

a. Determine the contribution margin per unit for each type of vase.
b. Determine the contribution margin per machine hour for each type of vase.
c. Determine the number of units of each style of vase that Rose Incorporated should produce to maximize operating income.
d. What is the dollar amount of the maximum operating income as calculated in C above?

Reference no: EM131136775

Questions Cloud

Line and risk pooling effects are essentially applications : Line pooling and risk pooling effects are essentially applications of postponement strategy. Please pick one of these two pooling effects, indicate the decision that is postponed, the additional information that is obtained from postponement, and the..

Consider drafting business plan proposal : As an entrepreneur, you want to start a business. You know that the first step is to consider drafting a business plan proposal to organize all of your ideas. For this assignment, you will be submitting a business plan proposal for your imaginary bus..

Summarize the relevant points of the case : Summarize the relevant points of the case. What are all of the ethical issues in this case? Who are all of the relevant stakeholders affected by this case

Codes of conduct that create its ethical culture : A company must have an effective ethics program to ensure that all employees understand its value and comply with the policies and codes of conduct that create its ethical culture. Do you agree with this statement. Why or why not?

Rose incorporated manufactures two types of vases : Total fixed costs are $600,000, and Rose Incorporated can sell a maximum of 25,000 units of each type of vase annually. Machine hour capacity is 50,000 hours per year.

Describe the effect of each piece on you as a listener : Describe the effect of each piece on you as a listener. Compare and contrast these two pieces in terms of rhythm, melody, development, dynamics, and theme.

Describe the ways marketers can use marketing tools : List and shortly describe the ways marketers can use marketing tools to develop stronger bonds with customers.

Specific types of variance and trend analysis techniques : Identify two specific types of variance and trend analysis techniques. Provide a brief description and the benefits of using each technique, as it relates to your risk management project for this course.

How would you define market segment : you are a marketing manager of COC company- How would you define your market Segment?- and design the Four P's strategy of your product.Discuss

User Account

All Pages