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2 years ago

Short Inc has 5,200 machine hours available each month. The following information on the company's three products is available:

Business

1 answer:

Masteriza [31]2 years ago

4 0

Answer:

a) Production schedule

Product 3 - 3000 hr × $22.5 = 67,500

Product 2 - 2000 × $ 17/hr = 34,000

Product 1 -- 200 units × $15/ hr = 3,000

b) Possible maximum contribution margin

= $104,500

Explanation:

The production schedule that will be maximize the profit for Short Inc is that which maximizes the contribution per unit if the scarce machine hours.

Since Short Inc faces a limiting a factor in form of machine hours, it should allocate its its resources in such a way that maximises the contribution per unit of machine hours.

This is done below using a table:

Product 1 2 3

Contribution 45.00 54.00 22.50

Machine hour /unit 3 2 1

Contribution per hr 15 17/hr $22.5/hr

Ranking 3rd 2nd 1st

Production schedule:

Prroduct units Machine hours required

3 3000 3000×1 = 3000

2 1000 1000× 2 = 2000

1 200 66.7 200

5,200

Amount of machine hours available for product 1 is the a balance after allocation to Product 3 and Product 2. It is determined as follows:

=5,200 - ( 3000 + 2000)

= 200 hours

Units of product 1 to be produced = 200/3 = 66.7 units

Optimum production schedule

Product 3 - 3000 units

Product 2 - 1000 units

Product 1 --66.7 units

B) Maximum possible contribution margin

Product 3 - 3000 hr × $22.5 = 67,500

Product 2 - 2000 × $ 17/hr = 34,000

Product 1 -- 200 units × $15/ hr = 3,000

Total maximum contribution = $67,500 + $34,000 + $3000

= $104,500

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Answer:

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2 years ago

Unearned Income of Minor Children and Certain Students (LO 6.4) Brian and Kim have a 12-year-old child, Stan. For 2019, Brian an

antiseptic1488 [7]

Answer:

Answer for the question : Stan's tax for 2018 =105+240 = $345.

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is explained in the attachment.

Explanation:

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2 years ago

Due to a recent hurricane there is a major loss of sugarcane crops. At the same time in the U.S. consumers are eating healthier

Free_Kalibri [48]

Answer and explanation:

We should consider that at the same time as the hurricane, U.S. consumers were cutting back on sugar foods. It implies that the quantity demanded for sugar foods was likely to decrease bringing the prices up. However, the hurricane affecting the sugarcane crops affects the supply which will be lower. Thus, definitely, if the quantity supplied is lower so will the price.

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2 years ago

On January 1, 2021 Exibit Company purchased land costing $800.000. Instead of paying cash at the time of purchase. Jalen plans t

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Answer: Exhibit journal $

Date

January 1 2021

Land Dr. 800,000

Creditors. Cr. 800,000

Recognition of land purchased on four installment payment with 6% interest.

June 30,2021

Installment principal Dr 191,221.64

Installment Interest Dr 24,000

Bank Cr. 215,221.64

Narration. Payment of installment principal and interest as at date.

December 31,2021

Installment principal Dr 191,221.64

Installment Interest Dr. 24,000

Bank Cr. 215,221.64

Narration.Payment of installment principal and interest due for date.

B. The balance on notes payable and Interest as at December 31 2021 is zero.

Explanation:

The notes is recognised by increasing the creditors accounts with a credit posting while the land is recognised by debiting the asset accounts.

The interest elements which is calculated on the total sum of 800,000 per annum is divided into two and the results separated from the biannual installment payment, the interest elements will be equally debited to the income statement.

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2 years ago

Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received

marin [14]

Answer:

$11,560

$5666.661

Explanation:

Given the following :

Bill received from accountant = $17,000

This year's marginal tax rate = 32%

Next year's marginal tax rate = 37%

After tax return on investment = 11%

After tax cost of bill is paid in December :

Billed amount * this year's tax rate

$17,000 * ( 1 - 0.32)

= $17,000 * 0.68

= $11,560

B) After tax cost of bill was paid in January:

Billed amount * next year's tax rate * PV factor

From the present value factor table;

PV factor (1 years, 11%) = 0.9009

Hence,

$17,000 * 0.37 * 0.9009 = $5666.661

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2 years ago