Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) MD Widgets produces three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. Given below is per unit data apply:

  Model X Model Y Model Z
Selling price $80 $90 $100
Direct materials $30 30 30
Direct labor ($10 per hour) $15 15 20
Variable support costs ($5 per machine-hour) $5 10 10
Fixed support costs 20 20 20

a) For each model, find out contribution margin per unit.

b) For each model, find out contribution margin per machine-hour.

c) If there is excess capacity, which model is most profitable to produce? Describe why?

d) If there is a machine breakdown, which model is the most profitable to produce? describe why?

e) How can MD encourage her sales people to promote more profitable model?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918076

Have any Question? 


Related Questions in Accounting Basics

Practice questionsin what circumstances would you recommend

Practice questions: In what circumstances would you recommend the use of the machine hour overhead absorption rate?

I need help with a t-chart account with the following1

I need help with a T-Chart Account with the following: 1. Received $10,000 contribution from Bill London, owner, in exchange for capital. 2. Paid utilities expense of $400. 3. Paid the liability from July 5 (Purchased eq ...

Part 1the chief executive officer ceo of a pharmaceuticals

Part 1 The chief executive officer (CEO) of a pharmaceuticals company wants to invest in new architecture and art for the company headquarters. You have been chosen to recommend artwork for the new location. Review the f ...

Practice questionswhat influences have encouraged new

Practice questions: What influences have encouraged new developments in management accounting?

The retained earnings account balance for a large

The Retained Earnings account balance for a large corporation is $10,000,000. This amount represents a. cumulative profits over time that have not been distributed to shareholders b. cash in the bank c. current year prof ...

Full conditionals let x y z be random variables with joint

Full conditionals: Let X, Y, Z be random variables with joint density (discrete or continuous) p(x, y, z) ? f(x, z)g(y, z)h(z). Show that a) p(x|y, z) ? f(x, z), i.e. p(x|y, z) is a function of x and z; b) p(y|x, z) ? g( ...

What is represented by the labeled lines connecting

What is represented by the labeled lines connecting entities in an REA diagram? Why are journals and ledgers not modeled in an REA diagram?

Accrual accounting systemthe accrual accounting system is a

Accrual Accounting System The accrual accounting system is a standard system used by most businesses and is also the system used in the simulation. In relation to the rules of accrual accounting, consider the following q ...

Principle of accounting -u2dbdeliverable length 150-200

Principle Of Accounting -U2DB Deliverable Length: 150-200 Words What do you think is the connection between a diary you may have had when you were young and the recording process that you have recently learned about? Wha ...

Problem-fenwicke company organized and began operating a

Problem- Fenwicke Company organized and began operating a subsidiary in a foreign country on January 1, 2015, by investing LCU 68,000. This subsidiary immediately borrowed LCU 170,000 on a five-year note with 6 percent i ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate