Question : 111. Soap Company manufactures Soap X and Soap Y and can : 1233918

 

111. Soap Company manufactures Soap X and Soap Y and can sell all it can make of either. Based on the following data, which statement is true? 

 

X

Y

Sales Price

$32

$40

Variable Cost

22

24

 

 

 

Hours needed to process

5

8

 

 

 

 A. X is more profitable than YB. Y is more profitable than XC. Neither X nor Y have a positive contribution margin.D. X and Y are equally profitable.

112. Niva 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. Which product has the highest contribution margin per machine hour? A. BalesB. TalesC. WalesD. Bales and Tales have the same

113. Niva 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 margin per machine hour for Bales? A. $7B. $5C. $35D. $28

114. Niva 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 margin per machine hour for Tales? A. $7B. $5C. $28D. $35

115. Niva 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. $35B. $28C. $17D. $8.50

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

117. Niva 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 Niva 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. $5,000B. $7,000C. $4,000D. $28,000

118. The Delicious Cake Factory owns a building for its operations. Delicious uses only half of the building and is considering two options that have been presented to them. The Candy Store would like to purchase the half of the building that is not being used for $550,000. A 7% commission would have to be paid at the time of purchase. Ice Cream Delight would like to lease the half of the building for the next 5 years at $100,000 each year. Delicious would have to continue paying $9,000 of property taxes each year and $1,000 of yearly insurance on the property, according to the proposed lease agreement.Determine the differentia income or loss from the lease alternative. 

119. Koko Company Division B recorded sales of $350,000, variable cost of goods sold of $315,000, variable selling expenses of $13,000, and fixed costs of $60,000, creating a loss from operations of $38,000. Determine (a) the differential income or loss from the sales of Division B and (b) should this division be discontinued? 

120. Safe Security Company manufacturers home alarms. Currently it is manufacturing one of its components at a variable cost of $45 and fixed costs of $15 per unit. An outside provider of this component has offered to sell them the component for $30. Provide a differential analysis of the outside purchase proposal. 

121. An oven with a book value of $67,000 has an estimated 5 year life. A proposal is offered to sell the oven for $8,500 and replace it with a new oven for $115,000. The new machine has a five year life with no residual value. The new machine would reduce annual maintenance costs by $23,000. Provide a differential analysis on the proposal to replace the machine. 

 

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