Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Due to a strike in the plant of one of its competitors, demand for the company's products far exceeds its capacity to produce.  Management is trying to estimate which product(s) to concentrate on next week in filling its backlog of orders.  The direct labor rate is USD eight per hour, and only 3,000 hours of labor time are available each week.

[A] find out the amount of contribution margin that will be obtained per hour of labor time spent on each product.

[B] Which orders would you recommend that the company work on next week - the orders for product A, product B, or product C?  Show computations.

[C] By paying overtime wages, more than 3,000 hours of direct labor time can be made available next week.  Up to how much should the company be willing to pay per hour in overtime wages as long as there is unfilled demand for the three products?  describe your answer.

 

PRODUCT

 

A

B

C

Selling Price

$60

$90

$80

Variable Costs:

 

 

 

Direct Materials

27

14

40

Direct Labor

12

32

16

Variable Manufacturing Overhead

3

8

4

Total Variable Cost

42

54

60

Contribution Margin

$18

$36

$20

Contribution Margin Ratio

30%

40%

25%

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916229

Have any Question? 


Related Questions in Basic Finance

What is meant by the term prevailing torque what do we

What is meant by the term prevailing torque? What do we mean by the terms initial preload and residual preload? Why do they differ? What limits the usefulness of the so-called, long-form torque-preload equation? Explain ...

Instructions bulluse microsoft word 2010 in formulating

Instructions : •Use Microsoft word 2010 in formulating your answers. •Write the answers in your language and avoid copying from the internet. Answer the following questions: 1. What is management? Define it using your ow ...

For the correlational study described in problem 2 describe

For the correlational study described in Problem 2, describe how a third variable, such as family income or parents' educational level, might explain the relationship between academic performance and breakfast quality. E ...

Design a randomized groups experiment to test the

Design a randomized groups experiment to test the hypothesis that children who watch an hour-long violent television show subsequently play in a more aggressive fashion than children who watch a nonviolent TV show or who ...

1 why review the disclosure of allowance for loan losses

1. Why review the disclosure of allowance for loan losses for a bank? 2. Why review the disclosure of nonperforming assets for banks? 3. Why could a review of savings deposit balances be important when reviewing a bank's ...

Directions update the data with your recommendations for

Directions: Update the data with your recommendations for the blue cells, then use Solver to determine the minimum variance portfolio Choose the index for each asset class, type the name below and paste in the relevant r ...

1 what do we mean by overage in a retail lease agreement

1. What do we mean by overage in a retail lease agreement? How might it be calculated? 2. What is sensitivity analysis? How might it be used in real estate development? 3. Why is the practice of "holdbacks" used? Who is ...

Mimi joined umuc basketball team since summer 2016 on

Mimi joined UMUC basketball team since summer 2016. On average, she is able to score 30% of the field goals. Assume she tries 15 field goals in a game. (a) Let X be the number of field goals that Mimi scores in the game. ...

You own 21500 of city steel stock that has a beta of 332

You own $21,500 of City Steel stock that has a beta of 3.32. You also own $38,500 of Rent-N-Co (beta = 1.77) and $20,700 of Lincoln Corporation (beta = -.83). What is the beta of your portfolio?

Ace investment company is considering the purchase of the

Ace Investment Company is considering the purchase of the Apartment Arms project. Next year's NOI and cash flow is expected to be $2,000,000, and based on Ace's economic forecast, market supply and demand and vacancy lev ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro