User Account

All Pages

Determine contribution margin per unit for each type of vase

Assignment Help Accounting Basics
Reference no: EM131885172

Question: 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 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: EM131885172

Questions Cloud

What involvement does management need to have to achieve : What involvement does management need to have to achieve buy-in from internal and external stakeholders?
Explain the influence of governance and ethics : Explain the influence of Governance and Ethics. Discuss the Company Social Value.
Write a paper on the benefits of lean : Write 200 words or more on the topic: The Project Life Cycle. Must include at least 2 scholarly resources. Write a paper on the Benefits of Lean.
Find out what sort of exhibitions are currently housed : In the museum, find out what sort of exhibitions are currently housed in the museum and start with the exhibits that interest you.
Determine contribution margin per unit for each type of vase : 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.
What do you think of amazons move to online grocery delivery : What do you think of Amazon's move to online grocery delivery? Does it give the company a competitive advantage? Identify one of your favorite grocery stores.
Understanding of leader-member exchange : Based on your understanding of leader-member exchange (LMX) theory, how might follower perceptions (real or perceived) of leadership behaviors
Beginning with the renaissance the church : Beginning with the Renaissance the Church is no longer the only primary patron of the arts. Private families, governments and other secular (non-religious).
Decisions of healthcare professionals : Describe how the bioethical issue influenced the decisions of healthcare professionals involved in the case. Be sure to use specific examples.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss why an analyst might prefer to calculate

Discuss why an analyst might prefer to calculate a governmental entity debt burden as a percentage of full value of property rather than on a per capita basis.

  The fixed cost per week of running the stand

Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50.00. Her best guess is that she can sell 300 cups per week at $0.50 per cup. The variable cost of producing a cup of lemonade is $0.20.

  Describe the various kinds of short-term incentives used

Describe the various kinds of short-term incentives used by organizations, and explain why organizations design them

  Use the given data for abc music co to make a statement of

use the following data for abc music co. to prepare a statement of cash flows using the indirect method for the year

  Time value of money

Laxmi Silwal inherited a property from her grandparents few decades ago and since then the value of the property has been gradually increasing. She in planning to sell the property so she can buy a new house by the bay area. She is considering severa..

  The following monthly data are taken from ramirez

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $300,000;

  Zehms inc has a contribution margin per unit of 21 and a

zehms inc. has a contribution margin per unit of 21 and a contribution margin ratio of 60. how much is the selling

  Department a had no beginning inventory the department

department a had no beginning inventory. the department added direct materials of 120000 and conversion costs of 176000

  Research erp to determine what its purpose is

Research ERP to determine what its purpose is. Also, determine what problems have been encountered when different companies in different industries have implemented this kind of system.

  Compute the amount of the bonus payable to the employees

For the year ended December 31, 2011, Winter Company has implemented an employee bonus program equal to 3% of Winter's net income, which employees will share.

  Vintech company is planning to produce 2100 units of

vintech company is planning to produce 2100 units of product in 2011. each unit requires 3 pounds of materials at 6 per

  Prepare entries to record both the acquisition and the sale

Assume the same facts as in QS15 8 except that the stock acquired represents 40% of ORD Corp.'s outstanding stock.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd