Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Bell Inc. manufactures ACC222, an over the counter medication that enables all accounting students to earn no less than a B in Managerial Accounting. The cost of manufacturing this medication is $10 per bottle and the current selling price is $20 per bottle. A certain amount of ACC222 is further manufactured into ACC333, a similar medication to be used only by accounting majors. Each bottle of ACC222 is mixed with certain additional ingrediants to form ACC333. Each Bottle of ACC333 contains one-half of a bottle of ACC222 and additional ingrediants, which cost $5 per bottle. If ACC333 production was to be stopped, certain production assets related only to ACC333 could be sold for $10,000. ACC333 is sold for $25.00 per bottle. Assume there is unlimited demand for both ACC222 and ACC333.

1. How many bottles of ACC333 must be sold in order to justify the production of ACC333?
2. describe how the assumption of unlimited demand for both products impacts your answer. On other words, if there was a limited demand for ACC222 and/or ACC333, how would you change your calculations to take this into consideration?


For the following problem, please refer to the data for below for ABC Company:

In Department A, two products are sold, Product A and Product B. A is sold for $80/unit and has a variable cost of $50/unit. B is sold for $40/unit and has a variable cost of $30/unit. The direct labor hours for each unit of A are 3 and for B are 2. There are 80,000 direct labor hours available to the company. Demand by consumers for A and B is 20,000 units each.

In Department B, Product C is produced. The revenue per unit is $120 and the variable cost per unit is $100. Demand is 5,000 units. A portion of the direct labor (a portion of the variable costs) on Product C could be replaced by Product A (i.e., you have the cost of Product A rather than the direct labor of C) and save $20 of direct labor per unit of C.

1. Given the data presented in the problem, what is the maximum net income that can be earned by the company as a whole?

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M945616

Have any Question? 


Related Questions in Accounting Basics

1 what is the difference between a significant deficiency

1) What is the difference between a significant deficiency and a material weakness as it relates to internal Control? How does the presence of one material deficiency affect the auditor's report on internal controls unde ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "S Corporation" Please respond to the following: • Per the text and IRC, losses and deductions of ...

Assignmenttravel-r-us inc travel is a publicly-traded

Assignment Travel-R-Us, Inc. (Travel) is a publicly-traded company with annual revenue of $370 million and a fiscal year ending May 31. Travel owns and operates three cruise ships serving Alaska, the Mediterranean, and t ...

Assignmentcarol is a single mother who owns a wholesale

Assignment Carol is a single mother who owns a wholesale auto parts distributorship. The business is organized as a sole proprietorship. Her business has advanced, and she can no longer devote the time necessary to do he ...

Flint hills companys most recent financial statements

Flint Hills Company's most recent financial statements showed dismal performance. There was a net loss of $10,000 and the Statement of Cash Flows showed a net cash decrease in all categories. The company president called ...

Write a 700- to 1050-word summary of your teams discussion

Write a 700- to 1,050-word summary of your team's discussion regarding IFRS versus. GAAP. The summary should be structured in a subject-by-subject format. Include an introduction and a conclusion. Your discussion should ...

Attn super geek onlythe sarbanes-oxley act of 2002 sox was

ATTN: Super Geek Only The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the Enron scandal and other instances of accounting fraud. This act was passed to strengthen the role of the Securities and Exchange ...

The sanford company had the following balance sheet as of

The Sanford Company had the following balance sheet as of December 31, 20x2. The transactions for the first three months of 20x3 are also presented along with other information about specific accounts. Sanford Company Ba ...

Discussion liabilities please respond to the followingfor

Discussion: "Liabilities" Please respond to the following: For this week's eActivity, research one publicly traded company in which you are interested using the Internet and/or Strayer databases. Locate the company Websi ...

1 what was the hospitals original profit forecast assume

1. What was the hospital's original profit forecast (assume away any issues with depreciation, taxes, etc.)? Halfway through the fiscal year, what is the hospital's revised projection for FY11 profits? 2. Which inpatient ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen