Question
In: Accounting
Gallery Corporation makes two products, footballs and baseballs. Additional information follows: &
Gallery Corporation makes two products, footballs and baseballs. Additional information follows:
Footballs Baseballs
Demand (Units) 2,000 3,000
Selling price per unit $30 $8
Total variable costs per unit $ 12 $ 4
Fixed costs 10,000 5,250
Yards of leather per unit 1.25 0.25
Direct labor hours required per unit 0.75 1.0
Assume that Gallery is able to purchase only 2,500 yards of leather and wishes to maximize its income. Total labor hours available for production is 4,600 hours.
Required:
- Identify the limiting factor.
- What will be the sales at which Gallery Corp will be at maximum profit by considering limiting factor.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Q4. Gallery Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseballs Demand (Units)...
Q4. Gallery Corporation makes two products, footballs and
baseballs. Additional information follows: Footballs Baseballs
Demand (Units) 2,000 3,000 Selling price per unit $30 $8 Total
variable costs per unit $ 12 $ 4 Fixed costs 10,000 5,250 Yards of
leather per unit 1.25 0.25 Direct labor hours required per unit
0.75 1.0 Assume that Gallery is able to purchase only 2,500 yards
of leather and wishes to maximize its income. Total labor hours
available for production is 4,600 hours. Required:...
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Product A
Product B
Selling price
$10
$20
Variable costs
7
12
Total annual fixed costs are $840,000. The firm's experience has
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The Red Company is taxed at 30%
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Determine the number of units to be sold at the break-even
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b.
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[The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium...
[The following information applies to the questions
displayed below.]
Performance Products Corporation
makes two products, titanium Rims and Posts. Data regarding the two
products follow:
Direct
Labor-Hours
per unit
Annual
Production
Rims
0.70
26,000 units
Posts
0.80
90,000 units
Additional information about the
company follows:
a. Rims require $14 in direct
materials per unit, and Posts require $10.
b. The direct labor wage rate is
$20 per hour.
c. Rims are more complex to...
Perfect Corporation manufactures four products; information regarding those products is as follows:
Perfect Corporation manufactures four products; information
regarding those products is as follows:
A
B
C
D
Sales
Price per
Unit
$300
$250 $350
$500
Variable Cost per Unit $170 $130 $ 210 $330
Machine Hours per
Unit
5 3
4 6
Periodic Demand in
Units 300
500
800 250
Answer the following:
(A) If Perfect Corporation has a monthly
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Jonah Hill Company manufactures two products. Information about the two products is as follows: Product...
Jonah Hill Company manufactures two products. Information
about the two products is as follows:
Product X
Product Y
Selling price per unit
$80
$30
Variable costs per unit
40
20
Contribution margin per unit
$40
$10
The company expects fixed costs to be $185,000. The firm
expects 70% of its sales (in units) to be Product X and 30% to be
Product Y (a sales mix of 7:3).
a. Calculate the weighted average contribution margin or
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A company makes two products, the variable costs are as follows; Product A Product B £...
A company makes two products, the variable costs are as
follows;
Product A Product B
£ £
Direct materials 1 3
Direct labour (£6 per hour) 6 3
Variable overhead 1 1
8 7
The sale price of A is £14 and B is £11. During the month of
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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:...
Performance Products Corporation makes two products, titanium
Rims and Posts. Data regarding the two products follow:
Direct
Labor-Hours
per unit
Annual
Production
Rims
0.30
27,000 units
Posts
0.50
75,000 units
Additional information about the company follows:
Rims require $12 in direct materials per unit, and Posts
require $10.
The direct labor wage rate is $20 per hour.
Rims are more complex to manufacture than Posts and they
require special equipment.
The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:...
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Rims and Posts. Data regarding the two products follow: Direct
Labor-Hours per unit Annual Production Rims 0.30 26,000 units Posts
0.50 70,000 units Additional information about the company follows:
Rims require $15 in direct materials per unit, and Posts require
$11. The direct labor wage rate is $15 per hour. Rims are more
complex to manufacture than Posts and they require special
equipment. The ABC system has the following activity cost pools:
Estimated...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:...
Performance Products Corporation
makes two products, titanium Rims and Posts. Data regarding the two
products follow:
Direct
Labor-Hours
per unit
Annual
Production
Rims
0.70
22,000 units
Posts
0.70
79,000 units
Additional information about the
company follows:
a. Rims require $17 in direct
materials per unit, and Posts require $14.
b. The direct labor wage rate is
$19 per hour.
c. Rims are more complex to
manufacture than Posts and they require special equipment.
d....
A company sells two products. Information about two products is as follows: Product A: Sales Units-1200...
A company sells two products. Information about two products is
as follows:
Product A:
Sales Units-1200
Selling price per unit-$20
variable costs per unit 11
Product B:
Sales unit- 800
Selling price per unit- $25
Variable costs per unit- 18
If fixed costs are expected to be $12,300, what is the margin of
safety?
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