1.Lambardi Company sells 3 types of bags. Bag A sells for $16 and has variable cost of $9.00 per unit. Bag B sells for $16 and has variable cost of $12.00 per unit. Bag C sells for $8 and has variable costs of $6.00 per unit. Lambardi sells in a mix of 2 units of A, 3 units of B and 5 units of C. What is the weighted average contribution margin per unit for Lambardi?
2.Product A has a contribution margin per unit of $500 and required 2 hours of machine time. Product B has a contribution margin per unit of $1,000 and requires 5 hours of machine time. How much of each product should be produced given there are 100 hours of available machine time?
|
50 units of A and 25 units of B.
|
|
25 units of B.
|
|
50 units of A.
|
|
None of the above
|
Delfi Company produces two models of seats, Toro and Prep. Information regarding these products for May follows:
|
Toro
|
Prep
|
|
Number of units
|
3,000
|
7,000
|
|
Sales revenue
|
$120,000
|
$140,000
|
|
Variable costs
|
60,000
|
42,000
|
|
Fixed costs
|
24,000
|
50,000
|
|
Net Income
|
$36,000
|
$48,000
|
|
Pounds of plastic to produce one bucket
|
4.0
|
1.6
|
|
Contribution margin per unit
|
$20
|
$14
|
3.Due to increased demand of plastic in the market, Delfi Company can obtain only 9,000 pounds of plastic per month. Delfi can sell as many seats as it can produce of either model. How many of each model should Delfi produce to maximize profit in May considering the constraint?
|
Toro: 0; Prep: 4,375
|
|
Toro: 2,250; Prep: 0
|
|
Toro: 1,125; Prep: 2,812
|
|
Toro: 0; Prep: 5,625
|
4.Abagail Corp. uses activity-based costing system with three activity cost pools. The following information is provided:
Costs: Wages and salaries $ 211,000
Depreciation 108,000
Utilities 119,000
Total $440,000
Activity Cost Pools
Assembly Setting Up Other
Wages and salaries 0.51 30% 10%
Depreciation 0.39 45% 20%
Utilities 0.21 40% 30%