Question
In: Accounting
Whitacre Products Inc. makes two products—P32W and I90J. Product P32W's selling price is $42.00 and its...
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Whitacre Products Inc. makes two products—P32W and I90J. Product P32W's selling price is $42.00 and its unit variable cost is $26.20. Product I90J's selling price is $320.00 and its unit variable cost is $196.00. The monthly demand is 3,300 units for product P32W and 900 units for I90J. The constrained resource is a particular machine that is available for 8,800 minutes each month. Each unit of product P32W requires 1 minutes on this machine and each unit of product I90J requires 10 minutes on this machine. |
| How many units of product I90J should be produced each month? (Round your intermediate calculations to 2 decimal places.) |
550 units
330 units
900 units
560 units
Solutions
Expert Solution
Answer- Product I90J should be produced each month 550 units.
Explanation-
| WHITACRE PRODUCTS INC. | ||
| Statement of Ranking | ||
| Products | P32W | I90J |
| $ | $ | |
| Selling Price per Unit | 42 | 320 |
| Less:- Variable cost per unit | 26.2 | 196 |
| Contribution per unit | 15.8 | 124 |
| Minutes on the constraint | 1 | 10 |
| Contribution per minute of the constrained resource | 15.8 | 12.4 |
| Ranking | 1 | 2 |
| Statement of Optimum product mix | ||||
| Products | Ranking | Machine Minutes per unit (a) | Total units (b) | Total machine hours c=(a*b) |
| P32W | 1 | 1 | 3300 | 3300 |
| I90J | 2 | 10 | 550 | 5500 (Balancing Figure) |
| Total | 8800 | |||
ekkarill92 answered 2 years agoRelated Solutions
Product details are as follows: Product P Q R S Selling price (£/unit) 42.00 57.00 54.60...
Product details are as follows:
Product
P
Q
R
S
Selling price (£/unit)
42.00
57.00
54.60
Material T1 (Kg/unit)
4
6
6
Material T2 (Kg/unit)
4
4.4
3.2
6
Direct labour (hours/unit)
1.2
2.4
3
3.4
Variable production overheads (£/unit)
2.20
2.60
2.20
2.80
Fixed production overheads (£/unit)
3.00
3.20
3.40
2.80
Expected demand for next month (units)
1,900
2,000
1,800
Products P, Q and R are sold to customers, while Product S is a
component used...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties,
Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian
Joy. Each product's selling price, variable expense per unit and
annual sales volume are as follows
Hawaiian Fantasy
Tahitian Joy
Selling price per unit
$
20
$
100
Variable expense
per unit
$
13
$
30
Number of units
sold annually
34,000
7,200
Fixed expenses total
$651,900 per year.
Required:
1. Assuming the sales
mix given above, do the following:
a. Prepare a
contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties,
Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian
Joy. Each product's selling price, variable expense per unit and
annual sales volume are as follows:
Hawaiian Fantasy
Tahitian Joy
Selling price per unit
$
20
$
100
Variable expense
per unit
$
13
$
30
Number of units
sold annually
34,000
7,200
Fixed expenses total
$651,900 per year.
2. The company has
developed a new product called Samoan Delight that sells for $50
each and that has variable...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian
Fantasy and Tahitian Joy. Each product's selling price, variable
expense per unit and annual sales volume are as follows: Hawaiian
Fantasy Tahitian Joy Selling price per unit $ 20 $ 100 Variable
expense per unit $ 13 $ 30 Number of units sold annually 34,000
7,200 Fixed expenses total $651,900 per year. Required: 1. Assuming
the sales mix given above, do the following: a. Prepare a
contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian
Fantasy and Tahitian Joy. Each product's selling price, variable
expense per unit and annual sales volume are as follows:
Hawaiian Fantasy
Tahitian Joy
Selling price per
unit
$
25
$
120
Variable expense per unit
$
15
$
42
Number of units sold
annually
14,000
7,500
Fixed expenses total $580,000 per year.
Required:
1. Assuming the sales mix given above, do the following:
a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian
Fantasy and Tahitian Joy. Each product's selling price, variable
expense per unit and annual sales volume are as follows: Hawaiian
Fantasy Tahitian Joy Selling price per unit $ 30 $ 125 Variable
expense per unit $ 21 $ 25 Number of units sold annually 10,000
5,600 Fixed expenses total $565,500 per year. Required: 1. Assuming
the sales mix given above, do the following: a. Prepare a
contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian
Fantasy and Tahitian Joy. Each product's selling price, variable
expense per unit and annual sales volume are as follows:
Hawaiian Fantasy
Tahitian Joy
Selling price per
unit
$
20
$
125
Variable expense per unit
$
14
$
25
Number of units sold
annually
30,000
5,200
Fixed expenses total $652,400 per year.
Required:
1. Assuming the sales mix given above, do the following:
a. Prepare a contribution format income statement showing both...
Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable...
Novelties, Inc., of Palau makes two products—Hawaiian Fantasy
and Tahitian Joy. Each product's selling price, variable expense
per unit and annual sales volume are as follows:
Hawaiian Fantasy
Tahitian Joy
Selling price per unit
$
12
$
120
Variable expense per unit
$
9
$
48
Number of units sold annually
36,000
5,400
Fixed expenses total $437,000 per year.
Required:
1. Assuming the sales mix given above, do the following:
a. Prepare a contribution format income statement showing both
dollar...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian
Fantasy and Tahitian Joy. Each product's selling price, variable
expense per unit and annual sales volume are as follows:
Hawaiian Fantasy
Tahitian Joy
Selling price per unit
$
20
$
150
Variable expense per unit
$
12
$
30
Number of units sold annually
37,000
7,400
Fixed expenses total $912,000 per year.
Required:
1. Assuming the sales mix given above, do the following:
a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian
Fantasy and Tahitian Joy. Each product's selling price, variable
expense per unit and annual sales volume are as follows:
Hawaiian Fantasy
Tahitian Joy
Selling price per
unit
$
40
$
140
Variable expense per unit
$
24
$
28
Number of units sold
annually
39,000
6,000
Fixed expenses total $907,200 per year.
Required:
1. Assuming the sales mix given above, do the following:
a. Prepare a contribution format income statement showing both...
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