Fathringer corporation makes three products that use compound W, the current con
ID: 2466396 • Letter: F
Question
Fathringer corporation makes three products that use compound W, the current constrained resource. data concerning those products appear below: Rank the products in order of their current profitability from most profitable to least profitable la other other rank the products in the order in which they should be emphasized. 20.consider the following production and cost for two products,L and C: The company can only perform 65.000 set-ups each due to limited dolled labor and there is unlimited demand for each product What it the largest possible total contribution margin that can be realized each period?Explanation / Answer
19)
Answer: D. QR, XS, BJ
=>BJ = (480.80 - 396) / 8 = 10.6 -III
XS = (365.40 - 276.08) / 5.80 = 15.4 - II
QR = (70.29 -51.70) / 1.10 = 16.9 - I
20)
Answer: B. $975,000
=> Product L = contribution margin per unit per machine set-ups = 130 / 10 = $13
Product C = contribution margin per unit per machine set-ups = 120 / 8 = $15
So, largest possible total contribution margin that can be realized each period if Product C is totally produced i.e. 65000 * 15 = $975000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.