84. Refer to the original data in the problem. What is the current contribution margin per unit for component P06 based on its selling price of…

 

 

84. Confer with the unique knowledge in the issue. What’s the present contribution margin per unit for element P06 based mostly on its promoting value of $220 and its annual manufacturing of 4,000 models? 
a. $51
b. $137
C. $169
d. $173

Variable value per unit:
 

 


 

The next are Silver Firm’s unit prices of creating and promoting an merchandise at a quantity of 8,000 models per 30 days (which represents the corporate’s capability):

  

Current gross sales quantity to 7,000 models per 30 days. An order has been acquired from a buyer in a overseas marketplace for 1,000 models at a value of $20 per unit. The order wouldn’t have an effect on common gross sales. Fastened prices, each manufacturing and promoting and administrative, are fixed inside the related vary between 6,000 and eight,000 models per 30 days. The variable promoting and administrative prices must be incurred for this particular order in addition to all different gross sales.

 

85. If the corporate accepts the particular order, the impact on whole working revenue will likely be a: 
a. $1,000 improve
b. $9,000 improve
c. $6,000 lower
D. $8,000 improve

Variable value per unit on regular gross sales:
 

 


 

86. The corporate has 100 faulty models of Product X left over from final 12 months which should be bought as scrap at lowered costs. The sale of those models would haven’t any impact on the corporate’s different gross sales. The fee determine that’s related as a information for setting a minimal value on these models is: 
a. $7
B. $1
c. $19
d. $12

Aside from variable promoting and administrative bills ($1), all different bills related to theses 100 faulty models are sunk (already incurred) and subsequently irrelevant.

 


 

Elfving Firm produces a single product. The price of producing and promoting a single unit of this product on the firm’s regular exercise degree of 80,000 models per 30 days is as follows:

  

The traditional promoting value of the product is $71.10 per unit.
An order has been acquired from an abroad buyer for 1,000 models to be delivered this month at a particular discounted value. This order would haven’t any impact on the corporate’s regular gross sales and wouldn’t change the overall quantity of the corporate’s fastened prices. The variable promoting and administrative expense can be $1.50 much less per unit on this order than on regular gross sales.
Direct labor is a variable value on this firm.

 

87. Suppose there’s ample idle capability to supply the models required by the abroad buyer and the particular discounted value on the particular order is $63.70 per unit. By how a lot would this particular order improve (lower) the corporate’s web working revenue for the month? 
a. $7,400
b. ($5,900)
C. $18,900
d. ($2,100)

Variable value per unit on regular gross sales:
 

 


 

88. Suppose the corporate is already working at capability when the particular order is acquired from the abroad buyer. What can be the chance value of every unit delivered to the abroad buyer? 
A. $24.80
b. $6.80
c. $7.40
d. $5.30

Variable value per unit on regular gross sales:
 

 


 

89. Suppose there’s not sufficient idle capability to supply the entire models for the abroad buyer and accepting the particular order would require chopping again on manufacturing of 400 models for normal prospects. The minimal acceptable value per unit for the particular order is closest to: 
a. $56.00
b. $65.80
c. $71.10
D. $54.72

Variable value per unit on regular gross sales:

Misplaced contribution margin:

Variable value per unit on particular order:
 

 


 

The Bharu Violin Firm has the capability to fabricate and promote 5,000 violins every year however is presently solely manufacturing and promoting 4,800. The next per unit numbers relate to annual operations at 4,800 models:

  

Woolgar Symphony Orchestra is excited about buying Bharu’s extra capability of 200 models however provided that they will get the violins for $350 every. This particular order wouldn’t have an effect on common gross sales or the price construction above.

 

90. If the particular order from Woolgar Symphony Orchestra is accepted, Bharu’s earnings for the 12 months will: 
A. improve by $40,000
b. lower by $10,000
c. lower by $22,000
d. lower by $28,000

 


 

91. Assume that Bharu is manufacturing and promoting at capability (5,000 models). Any particular order will imply a lack of common gross sales. Underneath these circumstances if the particular order from Woolgar Symphony Orchestra is accepted, Bharu’s earnings for the 12 months will lower by: 
a. $20,000
b. $22,000
c. $28,000
D. $50,000

Contribution margin per unit of standard gross sales:
 

 


 

Browning Firm makes 4 merchandise in a single facility. These merchandise have the next unit product prices:

  

Further knowledge regarding these merchandise are listed beneath.

  

The grinding machines are probably the constraint within the manufacturing facility. A complete of 24,500 minutes can be found per 30 days on these machines.
Direct labor is a variable value on this firm.

 

92. What number of minutes of grinding machine time can be required to fulfill demand for all 4 merchandise? 
a. 21,500
B. 27,100
c. 13,000
d. 24,500

Demand on the grinding machine:

Complete time required for all merchandise = 10,400 + 3,600 + 7,500 + 5,600 = 27,100

 


 

93. Which product makes the LEAST worthwhile use of the grinding machines? 
a. Product A
b. Product B
C. Product C
d. Product D

Optimum manufacturing plan:
 

 


 

 

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