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What is the effect on profit

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Reference no: EM133075556

Questions -

Q1. Ralston Dairy gathered this data about the two products that it produces:

Product

Current Sales Value

Estimated Added Processing Costs

Sales Value if Processed Further

Frozen yogurt

$8,000

$2,000

$11,000

Ice cream

12,000

7,000

18,000

What is the effect on profit if the ice cream is processed further?

Which of the products should be processed further?

-Frozen icecream

-frozen yoghurt

-neither

Q2. Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. What the contribution margin per the constrained resource for khaki shorts? Round to the nearest penny, two decimal places.

Reference no: EM133075556

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