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Tju [1.3M]
2 years ago
3

Duo Company manufactures two products, Uno and Dos. Contribution margin data follow.

Business
1 answer:
baherus [9]2 years ago
5 0

Answer:

1. Uno = $3

  Dos = $2

2. Uno

Explanation:

1. The computation of the contribution margin per scarce resource for each of the products is shown below:

= Unit contribution margin ÷ direct laborers per unit

For Uno, it  would be

= $3 ÷ $1 = $3

For Dos, it would be

= $12 ÷ $6 = $2

2. As we compare the contribution margin , the Uno has more unit of contribution margin than the Dos. So, Uno is most profitable

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Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price
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Answer:

Differential analysis as at April 30

                                            Make (Alternative 1)  Buy (Alternative 2)

Purchase Price                                $0.00                     $24.00

Direct materials                               $8.00                       $0.00

Direct labor                                     $12.00                      $0.00

Variable Costs - Case related         $3.00                      $0.00

Total Cost                                       $23.00                    $24.00

Conclusion

Company should make carrying cases instead of purchasing as this is cheaper by $1.00

Explanation:

There is a choice to be made between Make (Alternative 1) and Buy (Alternative 2). Compute the Total costs for these choices.

Ignore the fixed overheads as they are the same for both alternatives and hence irrelevant.

Choose the alternative with lower costs.

3 0
2 years ago
Sport organizations now seek to make money from “rights fees” paid by
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<span>Sport organizations now seek to make money from “rights fees” paid by: </span>the electronic media that want to sell sport audiences to advertisers.

In every sports match, there is usually a time slot when the match is halted before moving to the next round. This time slot is utilized by the sports organization to be used as an advertisement and will be given to the company with the highest bid.
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In a local survey, 100 citizens indicated their opinions on a revision to a local land-use plan. Of the 62 persons giving favora
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2 years ago
Alpha Company makes all its sales on account. Accounts receivable payment experience is as follows: Percent paid in the month of
kozerog [31]

Answer:

May's sales that are expected to be noncollectable are $7500.

Explanation:

The total collections from a months's credit sales is expected to be as follows,

35% in the month of sale

54% in the following month

6% in the second month after sale

The remaining is expected to be noncollectable.

The credit sales for a month are equal to 100%.

The percentage of noncollectable sales is = 100 - (35 + 54 + 6)  = 5%

Thus, 5% of each month's sale is expected to be noncollectable.

May's sales that are expected to be noncollectable are,

Noncollectable Sales-May = 150000 * 0.05  =  $7500

4 0
2 years ago
The sales manager is convinced that a 10% reduction in the selling price, combined with a $30,000 increase in advertising, would
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Answer:

Explanation:

Assumed Data    

Budgeted Sales   1000000

   

units sold           10000

Unit price           100

Cost Per unit           60

   

   

                     Before            After               Cahnge Due to

                      impelemtation    implementation           implementation

Sales           1000000        1125000*                      125000

Cost           -600000        -750000                      -150000

Profit           400000         375000                      -25000

Advertise Cost      0                  -30000                      -30000

                  400000          345000                      -55000

   

* Sales price                100

Reduction                  10%

After Reduction Sp  90

   

Current unit sales  10000

Increase                    25%

After increase   12500

   

Cost Per unit will remain the same because only sales price will be decreased to boost the sale  

New sales 12500*90 1125000

Cost         12500*60 750000

 

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