Mountaineer products manufactures two types of tents, Ask an Expert

Accounting

Mountaineer Products manufactures two types of tents: single-wall and double-wall. Selected data related to each type of tent is as follows:

single-wall double-wall

sales price $250.00 $375.00

Direct materials $25.00 $50.00

Direct labor $20.00 $40.00

Variable overhead $10.00 $15.00

machine hours 2 3

total fixed overhead is $150,000. most of the manufacturing process is done on specialized machines. for the upcoming year, there is a maximum of 9,000 machine hours available. management believes there is sufficient demand for 3,000 single-wall and 4,000 double-wall tents each year

Refer to the mountaineer products information above. in order to maximize profits, how many of each type of tent should be produced?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9951332

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