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stealth61 [152]
2 years ago
8

Hamrick Industries makes and sells two products. The demand for both products is unlimited. Product A has a contribution margin

of $7.70 per unit. Product B has a contribution margin of $2.64 per unit. The same machines are used to produce both products. Product A requires 0.33 machine hours and product B requires 0.20 machine hours. Which product should the company make and sell? Product A because the selling price is $11.00 per unit Product A because the contribution margin per unit is $7.70 Product A because the contribution margin per MH is $23.33 Product B because the contribution margin per MH is $13.20 Product B because the contribution margin per unit is $2.64
Business
2 answers:
sergejj [24]2 years ago
8 0

Answer:

Product A because the contribution margin per MH is $23.33

Explanation:

In terms of efficiency, you have to look for the highest outcome with the fewer use of resources. In this case, the resources available are the machines, and the outcome is the profit (margin per unit). Applying the formula:  Efficiency producing X (Ex) = [(1 hour of machine hour) / (Product x timed used per unit)]Margin per unit X, and comparing products A and B, you get that producing A is more efficient in terms of profits than producing B, by $10,1 per hour (23,33 - 13,2)

tatiyna2 years ago
8 0

Answer: Product A because contribution margin per unit is $7.70

Explanation:

Contribution margin is the difference between the sales price and the variable cost of a product, any product that has a positive contribution is worth investing in for the contribution will on the long run take off the fixed cost and company will subsequently makes a profit. However in a competitive situation the firm should chose a product with the higher contribution margin.

The price is not a strong determinant nor the contribution in relation to a single variable when the contribution per unit is giving.

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Following top-down methods is used when projects closely follow past projects in regard to features and costs of those features,
Hatshy [7]

Answer: Apportionment

Explanation: Apportionment is also known as analogous estimating which is used when projects closely follow past projects in features and costs. As a result, in addition to good historical data, estimates regarding project feature, cost and duration can be made quickly, with little effort and reasonable accuracy to various segments of the current project. The method of apportionment is very common in projects that are relatively standard, but with little variation or customisation.

4 0
2 years ago
Oriole Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cos
Fynjy0 [20]

Answer:

$1.2 per mile

Explanation:

Computation of the variable cost per mile using the high-low method

Using this formula

Variable cost per mile = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)

Let plug in the

Variable cost per mile= (14,721 - 13,503)/(8,510 - 7,495)

Variable cost per mile= 1,218/1,015

Variable cost per mile=$1.2 per mile

Therefore the Variable cost per mile will be $1.2 per mile.

6 0
2 years ago
Is the futures price of a stock index greater than or less than the expected future value of the index? Explain your answer.
stepan [7]

Answer:

It can be greater as well as less.

Explanation:

1st of all we should know what is Future Price and what is Stock Index.

The futures price can be more or less that the predicted fee.

When futures costs are lower than predicted price spot fees, the situation is known as normal backwardation.

When futures prices are higher than anticipated spot charges, it is called normal contango

8 0
2 years ago
In 2017, BPhone produces 5000 mobile phones and the total labor used to make the 5000 mobile phones is 4000 hours. Using the app
Kamila [148]

Answer:

d.1.25

Explanation:

To find the productivity ratio, we use this formula:

Productivity ratio = Output / Input

now, we plug the amounts into this formula:

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                            = 1.25

Thus, the correct answer is d).

7 0
2 years ago
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kozerog [31]

Answer:

The question is incomplete:

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In marketing, brand erosion means that customers will value the brand less and their perceived value will decrease. Luckily for Porsche, they did not listen to them. The Cayenne is by far Porsche's largest source of revenue and profits.

Porsche is a brand that most people associate with luxury sports car, and their most famous model, the 911, has barely been modified during the last 50 years. But as the SUV market increased in size, their profits profits started to shrink. Many Porsche purists despise Cayennes and Macans, but the fact is that they increased the total number of units sold way beyond anyone's expectations.

Nowadays, more people view Porsche as a luxury car manufacturer and more people want to buy their products. A small number of consumers felt disappointed, but a vast majority were pleased.

3 0
2 years ago
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