Solution-Compute the most profitable combination of products

Compute the most profitable combination of products

Assignment Help Cost Accounting

Reference no: EM13531008

Scarce Resource Usage

E 10. EZ, Inc. manufactures two products that require both machine processing and labor operations. Although there is unlimited demand for both products, EZ could devote all its capacities to a single product. Unit prices, cost data, and processing requirements follow.

	Product E	Product Z
Unit selling price	$70	$230
Unit variable costs	$30	$90
Machine hours per unit	0.4	1.4
Labor hours per unit	2.0	6.0

Next year, the company will be limited to 160,000 machine hours and 120,000 labor hours. Fixed costs for the year are $1,500,000.

1. Compute the most profitable combination of products to be produced next year.

2. Prepare an income statement using the contribution margin format for the product volume computed in 1.

Reference no: EM13531008

Questions Cloud

What is its approximate internal rate of return : The machine will cost $170,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $33,740. What is its approximate internal rate of return?

Determine the net present value - gamma company : Gamma Company accumulates the following data concerning a proposed capital investment: cash cost $225,000, net annual cash flow $34,000, present value factor of cash inflows for 10 years 6.71 (rounded). Determine the net present value, and indicat..

Classifications of current assets : Prepare a classified balance sheet in report form. For assets, use the classifications of current assets, plant and equipment, and other assets. For liabilities, use the classifications of current liabilities and long-term liabilities.

Prepare a classified balance sheet in report form : The information was obtained from the accounts of Airlines International dated December 31, 2000. It is presented in alphabetical order

Compute the most profitable combination of products : Compute the most profitable combination of products to be produced next year and prepare an income statement using the contribution margin format for the product volume computed

Prepare a monthly schedule of expected cash payments : Prepare a monthly schedule of expected cash payments for direct materials for the first quarter of 2011.

Compute the cost of goods sold : Compute the cost of goods sold for the year ended December 31, 2001, and the ending inventory under the cost assumptions

University are complaining of a serious housing crunch : Students at a major university are complaining of a serious housing crunch

How many ways are there to select a committee : How many ways are there to select a committee

User Account

All Pages

Compute the most profitable combination of products

Reference no: EM13531008

Reference no: EM13531008

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT