Solution-Determine total contribution margin of soraya

Determine total contribution margin of soraya jewellery

Assignment Help Managerial Accounting

Reference no: EM133036455

Question - Soraya Jewellery assembles pearls and crystals to make brooch sets for festive seasons throughout the year. There are three types of brooch sets, Diamond, Platinum and Silver. The owner of the business, Soraya gets her regular supply from a Korean dealer but recently, due to the outbreak of Covid-19, all supplies from Korea have been halted. Fortunately, Soraya has some spare pearls and crystals, that she thinks enough to last for the next six months. There are 74,700 units of pearls in stock. The following is the information related to the products.

	Diamond RM	Platinum RM	Silver RM
Selling price per set	155.00	175.00	115.00
Variable costs per set	43.00	52.00	66.00
Usage of pearls per set	56 units	75 units	45 units
Demand (sets for 6 months)	450 sets	600 sets	540 sets

Required -

a. Advise Soraya on which brooch set should be produced first, second and third in terms of contributing profits.

b. Determine total contribution margin of Soraya Jewellery for the next six months.

Reference no: EM133036455

Questions Cloud

What would be the effect on total? production : Assume complete? specialization, where China produces only toys and France produces only wine. What would be the effect on total? production

What is mission philosophy : Question 1: What has been the most significant work of God in a mission that you have witnessed so far?

What is the rate function primarily used for : What is the RATE function primarily used for? Why is the PMT value positive and the present value negative in the RATE function

How communication is needed to address concerns : Think of a change in a company with which you are familiar. Who were the stakeholders involved in this change?

Determine total contribution margin of soraya jewellery : Advise Soraya on which brooch set should be produced first, second and third in terms of contributing profits. Determine total contribution margin of Soraya

Calculate the residual earnings : Problem: The following forecasts of earnings per share (EPS) and dividend per share (DPS) were made at the end of 2019 for a firm with a book value per share of

Prepare a statement of cost of goods manufactured : Prepare a statement of cost of goods manufactured for Walk-Toki Manufacturing Company for the year ended December 31

List principles of effective teamwork : List 10 principles of effective teamwork. Describe the importance of teamwork in the achievement of workplace goals.

Forces of magnetism important : Why are these three Forces of Magnetism important? How do they optimize system effectiveness and individual performance?

User Account

All Pages

Determine total contribution margin of soraya jewellery

Reference no: EM133036455

Reference no: EM133036455

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT