What is the amount of contribution margin

Assignment Help Financial Accounting
Reference no: EM13525294

Calibri Company produces three products: F, G, and H. The selling price, variable costs, and contribution margin for one unit of each product follow:

Additional Details
Calibri Company produces three products: F, G, and H. The selling price, variable costs, and contribution margin for one unit of each product follow:

Product
F G H
Selling price $40 $110 $50
Variable costs:
Direct materials $16 $25 $20
Direct labor $11 $20 $12
Variable manufacturing $10 $10 $8
overhead
Total variable costs $37 $55 $40
Contribution margin $3 $55 $10
Contribution margin ratio 7.5% 50% 20%

One of two major machines used to produce these products has broken down and a new one is on backorder, so the company is down to one machine. Product F takes 0.20 machine hours to produce one unit, Product G takes 11 machine hours to produce one unit, and Product H takes 2.5 machine hours. There are 1,000 machine hours available on the new machine.

a. What is the amount of contribution margin that will be obtained per machine hour on each product?

b. Which product would you recommend that the company work on next week ' the orders for product F, product G or product H? Show your computation

Reference no: EM13525294

Questions Cloud

Find the speed of the stone just before impact : a stone is projected at a cliff of height h with an initial speed of 44.0 m/s directed at an angle ?0 = 51.0° above the horizontal. find the speed of the stone just before impact
Determine the dividends per share and the total dividends : Perform the same computations, with the assumption that the preferred stock was noncumulative. If an amount is zero, enter "0". Round per share amounts to two decimal places
Marketing services versus products : Marketing Services Versus Products
How fast could it go and in what direction would it travel : A paper airplane is given a push so that it could fly 7m/s 35° North of East, How fast could it go and in what direction would it travel
What is the amount of contribution margin : What is the amount of contribution margin that will be obtained per machine hour on each product and which product would you recommend that the company work on next week ' the orders for product F, product G or product H? Show your computation
Signature sensory retail experience : Q1. Conduct a semiotic analysis of Victoria Secret, and describe how the basic brand meaning  is supported by its signature sensory retail experience?
State a complete mechanism for the reaction to show electron : Draw a complete mechanism for the reaction that occurs in this solvolysis experiment showing all the intermediates and using curvy arrows to show electron movement
Explain what is the relative humidity : Due to a failure in the building's cooling system, the room's temperature rises to 37 degrees Celsius. Does all of the rest of the water evaporate. What is the partial pressure of water vapor in the room. What is the relative humidity
Prepare entries for manufacturing costs : Prepare entries for manufacturing costs and Journalize the following transactions - Purchased raw materials on account

Reviews

Write a Review

Financial Accounting Questions & Answers

  Evaluate taxable income with the above information

Texark Inc., a calendar year taxpayer, reported $5,210,300 total income before tax on its financial statements prepared in accordance with GAAP How do evaluate taxable income with the above information?

  Analyse budgets and make appropriate decisions

Making financial decisions based on financial information. You will need to use an example either from your present employer, or you can use the published financial statements of companies such as British Airways, which are published on the intern..

  What are his bases in the land and automobile received

How much loss or gain must F identify in this exchange, and what are his bases in the land and automobile received and how much gain or loss must G identify in this exchange, and what is her basis in the land received.?

  Question 1 what is the value of a share of preferred stock

question 1. what is the value of a share of preferred stock that pays a 9.50 dividend suppose k is 12.2. a 1000

  What type of fund should st. george county use to account

What type of fund should St. George County use to account for the retained percentage? Explain your answer.

  Discuss how companies might minimize risk

Discuss how environment factors such as economics, political, and social factors may influence a business’ decision to engage in foreign trade. Discuss how companies might minimize risk related to exchange rates

  Explain briefly how swift would current year financial state

There is no doubt that Swift is guilty and the settlement is reasonably estimable at $10 billion payable evenly over 10 years starting next year. E xplain b riefly how Swift would address this in its current year financial statements.

  Evaluate the operating income

Evaluate the operating income that would result from the production manager's plan to manufacture 96,000 units at each plant.

  Execute a detailed porter''s five forces analysis

Evaluate which of Porter's Three Generic strategies you may use as you rebuild The Broadway Cafe for the 21 st century.

  Prepare the appropriate journal entries

The overhaul was completed on January 7, 2011 at a cost of $28,000. Because of a slowdown in the economy, the truck only operated for 21,000 km for the remainder of 2011. Instructions Prepare the appropriate journal entries for 2011 relating to t..

  Find the unknowns for each of the divisions

The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The subsequent divisional information is presented for

  The selling expenses of caribou inc for 2011 are 13 of

the selling expenses of caribou inc. for 2011 are 13 of sales. general expenses excluding doubtful accounts are 25 of

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!

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