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Factoring resource constraints into product mix decisions
Rose Incorporated manufactures two types of vases, small and large. The following per-unit data are available.
Small Vase Large VaseSale price $60 $100Variable costs $35 $60Machine 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?
Do you think the company's revenue goal of $25 million by 2015 is realistic and explain how purchase of the apple press might affect the company's revenue goals.
Prepare a contribution margin income statement separating all variable and fixed costs into their own categories and determine the breakeven point in units and dollars. Also, determine the number of units and dollars that need to be sold to make a ..
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ABC's variable-costing income statement would reveal a gross margin of $270,000.
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From the viewpoint of the firm, should the Retail Division purchase the coats internally or externally? show calculations and explain
Compute the predetermined fixed overhead application rate that would be used in March. Compute the number of machine hours that would be allowed for actual March production. Compute the fixed overhead applied to work in process during March.
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