A8 Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 733,000 units of Basic, 564,000 units of Classic, and 129,000 units of Deluxe. Bricktan has limited production capacity of 1,116,000machine hours. Machine hours per unit are as follows: Basic, 1 hour; Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the most profitable sales mix forBricktan Incorporated?Multiple Choice435,000 Basic, 297,600 Classic and 129,000 Deluxe.645,000 Basic, O Classic and 129,000 Deluxe.88,500 Basic, 564,000 Classic and 129,000 Deluxe.186,000 Basic, 129,000 Classic and 297,600 Deluxe.73,300 Basic, 564,000 Classic and 297,600 Deluxe.

Bricktan Incorporated manufactures three products: Basic, Classic, and Deluxe. The company faces…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made?
Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profits increase if 200 more hours of machine time can be obtained?
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 724,000 units of Basic, 492,000 units of Classic, and 124,500 units of Deluxe. Bricktan has limited production capacity of 1,008.000 machine hours. Machine hours per unit are as follows: Basic, 1 hour, Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the most profitable sales mix for Bricktan Incorporated? Multiple Choice 622,500 Basic, O Classic and 124,500 Deluxe. 72,400 Basic, 492,000 Classic and 268,800 Deluxe. 81,750 Basic, 492,000 Classic and 124,500 Deluxe. 168,000 Basic, 124,500 Classic and 268,800 Deluxe. 367,500 Basic, 268,800 Classic and 124,500 Deluxe.
Rosie's Company has three products, P1, P2, and P3. The maximum Rosie's can sell is 85,000 units of P1, 84,000 units of P2, and 72.000 units of P3. Rosie's has limited production capacity of 69,000 hours, It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie's Company? Multiple Choice 372.000 P1, 84,000 P2, 72,000 P3 64,800 P1, 84,000 P2, 372.000 P3. 372,000 P1, 80,000 P2, 372.0000 P3. 58,800 P1, B0,000 P2, 72.000 P3. 64,800 P1, 85,000 P2, 64,800 P3.
Bricktan Inc. makes thiree products, basic, classic, and deluxe. The maximum Bricktan can sel is 90000 units of basic, 444000 unts of classic, and 150,000 units of deluxe. Bricktan has limited production capacity of 102.000 hours. It can produce 10 units of basic 8 unts of classic, and 4 units of deluxe per hour. Contribution margin per unit is $15 for the basic, $25 for the dassic, and $55 for the delue What is the total contribution margin if Bricktan chooses the most profitable sales mbe
Garcia Company sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35, variable overhead of $50, and variable selling, general, and administrative costs of $8. The company has fixed overhead costs of $645,000 and fixed selling, general, and administrative costs of $111,000. It expects to produce and sell 10,500 snowboards. What is the selling price per unit if Garcia uses a markup of 15% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) Selling price per unit
Widgeon Co. manufactures three products: Bales, Tales, and Wales. Their selling prices are $55, $78, and $32, respectively. The variable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales, 7 hours; and Wales, 1 hour.What is the contribution per machine hour for Wales?
Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw materlal that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

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