Which product makes the largest contribution

Assignment Help Managerial Accounting
Reference no: EM13957146

Mega Chemical Company produces ZylexA and a related product called ZylexB. ZylexB, which sells for $15.00 per gallon, is made from a base of ZylexA plus additional ingredients. It takes 25 minutes to manufacture a gallon of ZylexA and an additional 10 minutes to manufacture a gallon of ZylexB. ZylexA sells for $9.00 per gallon. The cost per gallon of manufacturing ZylexA and the additional costs to convert it into ZylexB are:

1089_259-B-M-A-D-M (1059).png

Both products have been successful, and demand for both products is strong and beyond the company's capacity. Since it takes additional time to manufacture ZylexB, the vice president of production is trying to determine whether ZylexB should be produced.

Required:

Which product makes the largest contribution to company profit, given a capacity constraint measured in terms of production time? 

Reference no: EM13957146

Questions Cloud

What can an investor learn from looking at the relationship : What can an investor learn from looking at the relationship between operating, financing and investing cash flows from year to year?
Describe your own environment : Consider the natural environment or biome found in the geographic area where you currently live. For example, if you live in the Midwest, the natural biome for this area is the grassland. If you live in Alaska you are likely to live in either the ..
What is the percentage uncertainty in the distance travelled : The time it takes to go from rest to 30 mph at constant deceleration can be measured to an accuracy of 1%. What is the percentage uncertainty in the distance travelled?
Draw a histogram and frequency polygon : Calculate percentage and sectarian angle of each program - construct a frequency distribution and draw a histogram and frequency polygon.
Which product makes the largest contribution : Which product makes the largest contribution to company profit, given a capacity constraint measured in terms of production time?
Find regression equation to predict advertising costs : Assuming there is a statistically significant relationship, use the least squares method to find the regression equation to predict the advertising costs based on the number of orders received. Please use the regression procedure within Excel under T..
What is a pseudo force : Draw the free body diagram of the upper block "as seen" i) from the frame of reference of the table (or ground), ii) from the frame of reference of the lower block.
Probability that you will have to wait longer than 10 minute : What is the probability that you will have to wait longer than 10 minutes
Non-substantive sustainability-functional integrity : In your own words, describe what Thompson means by "functional integrity" and "resource sufficiency" -- the two paradigms he proposes for practically conceptualizing sustainability. Then, explain what Thompson means by "non-substantive sustainabil..

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Selected comparative financial statements of tripoly company

Selected comparative financial statements of Tripoly Company follow.

  At what point should managers reorder the steering wheels

At what point should managers reorder the steering wheels, assuming that both demand and purchase-order lead time are known with certainty?

  Determing cost driver-computing cost

What is the appropriate cost driver for allocating overhead to pizzas in Year 1? Using normal costing, compute the cost of each of the 336,033 meat pizzas produced in year 1. Was overhead over-or under applied during the year? By how much? Why do yo..

  How would you select an organizational form for a business

how would you select an organizational form for a business? think about this question as you read the following

  Following information is available for morgan & parker co.

The following information is available for Morgan Company and Parker Company, similar firms operating in the same industry.

  Analyze the economics of international taxation

Analyze the economics of international taxation. Based on your analysis, create an alternative to international taxation then evaluate how your alternative impacts foreign investments.

  Journalize the transactions - big water boating corporation

Paid the cash dividends and issued the certificates for the common stock dividend - Journalize the transactions

  What is the present yearly net operating income or loss

What is the present yearly net operating income or loss and what is the present break-even point in units and in Swiss franc sales?

  Expense for departments are allocated to mediterranean

Expense for departments are allocated to Mediterranean and Trans-Atlantic cruises - The sea miles logged are 6,000,000 for the Mediterranean and 18,000,000 for the Trans

  Describe the manufacturing process

Classify all manufacturing costs and selling and administrative expenses as either variable or fixed and prepare a contribution margin income statement separating all variable and fixed costs into their own categories.

  Cost-benefit analysis-personal budgeting

Calculate your budgeted cost per mile of purchasing, owning, and driving this vehicle over the five years.

  The best in the history of the company

"In my opinion, it will be a mistake if that new plant is built," said Carl Roberts, controller of Tanka Toys. "Why, if that plant was in existence right now, we would be reporting a loss of $100,000 for the fiscal year (1995) rather than a profit, a..

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