What sales mix will maximize profits

Reference no: EM13134613

Glamorous Grooming Corporation makes and sells brushes and combs. It can sell all of either product it can make. The following data are pertinent to each respective product:

Brushes Combs
Units of output per machine hour 8 20
Selling price per unit $12.00 $4.00
Product cost per unit
Direct material $1.00 $1.20
Direct labor 2.00 0.10
Variable overhead 0.50 0.05

Total fixed overhead is $380,000.

The company has 40,000 machine hours available for production. What sales mix will maximize profits?

Reference no: EM13134613

Questions Cloud

Explain the rules for discharge of indebtedness income : Explain the rules for discharge of indebtedness income. When is it taxable, and when isn't it? Why? Do you think these rules make sense?

Product satisfaction: does the "magic" last? : Product satisfaction: Does the "magic" last? (one page at least 275 words) write two pages, any organization or institution

Determine which enantiomer phenylbutene gives the e product : Determine which enantiomer of 2-iodo-3-phenylbutene gives the E product (2R, 3R or 2S, 3R), and explain clearly (using unambiguous diagrams) why that is the case.

What is most important quality for accounting information : The Financial Accounting Standards Board has developed a conceptual framework for financial accounting and reporting. The FASB has issued seven Statements of Financial Accounting Concepts.

What sales mix will maximize profits : The company has 40,000 machine hours available for production. What sales mix will maximize profits?

Compute the npv of the computers using the nominal require : The head of the corporate tax division of a major public relations firm has proposed investing $295,000 in personal computers for the staff. The useful life and recovery period for the computers are both 5 years.

Explain enough information to arrive at same conclusion : In particular, discuss whether there is enough information presented in the article to arrive at the same conclusion as reported."

Solid of revolution about y-axis : Let P be the point (6,0), let Q be the point (0,4), and let R be the triangular region with with vertices at P, Q, and the origin. Determine the volume of the solid of revolution formed when R is revolved about the y-axis.

Depreciation expense on the asset : The activity method will be used for depreciation. What is the depreciation expense on this asset?

User Account

All Pages