Question
In: Accounting
The following data are for the two products produced by Tadros Company. Product A Product B...
The following data are for the two products produced by Tadros
Company.
| Product A | Product B | ||||
| Direct materials | $ | 14 per unit | $ | 26 per unit | |
| Direct labor hours | 0.3 DLH per unit | 1.6 DLH per unit | |||
| Machine hours | 0.2 MH per unit | 1.2 MH per unit | |||
| Batches | 115 batches | 230 batches | |||
| Volume | 10,000 units | 2,000 units | |||
| Engineering modifications | 10 modifications | 50 modifications | |||
| Number of customers | 500 customers | 400 customers | |||
| Market price | $ | 35 per unit | $ | 120 per unit | |
The company's direct labor rate is $20 per direct labor hour (DLH).
Additional information follows.
| Costs | Driver | |||
| Indirect manufacturing | ||||
| Engineering support | $ | 25,500 | Engineering modifications | |
| Electricity | 22,000 | Machine hours | ||
| Setup costs | 43,000 | Batches | ||
| Nonmanufacturing | ||||
| Customer service | 73,000 | Number of customers | ||
Required:
(Round your per unit cost answers to 2 decimal places and other
answers to nearest whole number. Loss amounts should be indicated
with minus sign.)
Solutions
Expert Solution
Product A is Profitable & Product B is loss making Product.
ekkarill92 answered 2 years agoRelated Solutions
The following data are for the two products produced by Tadros Company. Product A Product B...
The following data are for the two products produced by Tadros
Company.
Product A
Product B
Direct materials
$
14 per unit
$
25 per unit
Direct labor hours
0.6 DLH per unit
1.5 DLH per unit
Machine hours
0.5 MH per unit
1.1 MH per unit
Batches
100 batches
200 batches
Volume
10,000 units
2,000 units
Engineering modifications
10 modifications
50 modifications
Number of customers
500 customers
400 customers
Market price
$
34 per unit
$
120 per unit...
The following data are for the two products produced by Tadros Company. Product A Product B...
The following data are for the two products produced by Tadros
Company.
Product A
Product B
Direct
materials
$
14 per unit
$
24 per unit
Direct labor hours
0.6 DLH per unit
1.5 DLH per unit
Machine hours
0.5 MH per unit
1.1 MH per unit
Batches
125 batches
250 batches
Volume
10,000 units
2,000 units
Engineering modifications
10 modifications
50 modifications
Number of customers
500 customers
400 customers
Market price
$
34 per unit
$
95 per unit...
The following data are for the two products produced by Tadros Company. Product A Product...
The following data are for the two products produced by Tadros
Company.
Product A
Product B
Direct materials
$
14 per unit
$
26 per unit
Direct labor hours
0.5 DLH per unit
1.5 DLH per unit
Machine hours
0.4 MH per unit
1.1 MH per unit
Batches
100 batches
200 batches
Volume
10,000 units
2,000 units
Engineering modifications
9 modifications
45 modifications
Number of customers
500 customers
400 customers
Market price
$
34 per unit
$
95...
The following data are for the two products produced by Tadros Company. Product A Product...
The following data are for the two products produced by Tadros
Company.
Product A
Product B
Direct materials
$
14 per unit
$
26 per unit
Direct labor hours
0.5 DLH per
unit
1.5 DLH per
unit
Machine hours
0.4 MH per
unit
1.1 MH per
unit
Batches
100 batches
200 batches
Volume
10,000
units
2,000 units
Engineering modifications
9
modifications
45
modifications
Number of customers
500
customers
400
customers
Market price
$
34 per unit
$
95...
The following data are for the two products produced by Shakti Company. Product A Product B...
The following data are for the two products produced by Shakti
Company.
Product A
Product B
Direct materials
$
15 per unit
$
24 per unit
Direct labor hours
0.3 DLH per unit
1.6 DLH per unit
Machine hours
0.1 MH per unit
1.2 MH per unit
Batches
125 batches
225 batches
Volume
10,000 units
2,000 units
Engineering modifications
12 modifications
58 modifications
Number of customers
500 customers
400 customers
Market price
$
30 per unit
$
120 per unit...
A company sells two products, A and B. Product A Product B Produced and sold 8.000...
A company sells two products, A and B.
Product A
Product B
Produced and sold
8.000 units
16.000 units
Sale price per unit
65
52
Variable cost per unit
35
30
Fixed cost per unit
15
15
Fixed cost is divided in a traditional way, based on the
produced quantity.
The company started to design a new product C to replace product
B. The company could sell 11.000 units of product C with a selling
price of 80 per unit....
consider the following data for two products of gitano manufacturing number id units produced product a...
consider the following data for two products of gitano
manufacturing
number id units produced product a 11,500 units product b 1300
units
direct labor cost (@ $27 per DLH) product a 0.14 DLH per unit
product b 0.28 DLH per unit
direct materials cost product a $2 per unit product b $2.50
per unit
machine setup overhead costs $51,176
materials handling $ 55,000
quality control inspections $79,380
total $ 185,556
round to two decimal places
1.
use direct labor hours...
A company sells only two products, Product A and Product B, and has the following cost...
A company sells only two products, Product A and Product B, and
has the following cost information:
Selling price per unit – Product
A $4
Selling price per unit – Product
B $5
Variable cost per unit – Product
A $2
Variable cost per unit – Product
B $3
Total fixed
costs $840
The company sells two units of Product A for each unit it sells
of Product B. The company faces an income tax rate of 30%.
A) What is the breakeven point in...
The following information is for X Company's two products, A and B: Product A Product B...
The following information is for X Company's two products, A and
B: Product A Product B Revenue $93,000 $90,000 Total contribution
margin 39,990 41,400 Total fixed costs 25,750 57,620 Profit $14,240
$-16,220 $13,648 of Product A's fixed costs are avoidable; $29,962
of Product B's fixed costs are avoidable. X Company plans to drop
Product B since it shows a loss and increase sales of Product A by
$34,800. Accompanying the sales increase will be a fixed cost
increase of $5,000....
The following information is for X Company's two products, A and B: Product A Product B...
The following information is for X Company's two products, A and
B:
Product A
Product B
Revenue
$93,000
$90,000
Total contribution margin
39,990
37,800
Total fixed costs
30,430
55,990
Profit
$9,560
$-18,190
$15,215 of Product A's fixed costs are avoidable; $33,034 of
Product B's fixed costs are avoidable. X Company plans to drop
Product B since it shows a loss and increase sales of Product A by
$29,600. Accompanying the sales increase will be a fixed cost
increase of $4,800....
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