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114 widgeon co manufactures three products bales tales and wales the selling prices 4298885

 

 

114. Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.

What is the contribution per machine hour for Wales? 
A. $35
B. $28
C. $17
D. $8

 

115. Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.

Assuming that Widgeon Co. can sell all of the products they can make, what is the maximum contribution margin they can earn per month? 
A. $64,000
B. $70,000
C. $56,000
D. $34,000

 

116. Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.

Assuming that Widgeon produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time. Product demand does not warrant any more production of that product. What is the maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour? 
A. $5,000
B. $7,000
C. $4,000
D. $28,000

 

117. Flyer Company sells a product in a competitive marketplace.  Market analysis indicates that their product would probably sell at $48 per unit.  Flyer management desires a 12.5% profit margin on sales.  Their current full cost per unit for the product is $44 per unit.

What is the target cost of the company’s product? 
A. $44
B. $42
C. $43
D. $40

 

118. Flyer Company sells a product in a competitive marketplace.  Market analysis indicates that their product would probably sell at $48 per unit.  Flyer management desires a 12.5% profit margin on sales.  Their current full cost per unit for the product is $44 per unit.

What is the desired profit per unit? 
A. $6
B. $8
C. $5
D. $4

 

119. If the company meets the new target cost number, how much will they have to cut costs per unit, if any? 
A. $1
B. $3
C. $2
D. $0

 

120. If the company can not cut costs any lower than they already are what would the profit margin on sales be if they meet the market selling price? 
A. 9.3%
B. 7.3%
C. 10.3%
D. 8.3%

 

 

 

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