Results 1 to 3 of 3

Math Help - Accounting question

  1. #1
    Member princess_anna57's Avatar
    Joined
    Jul 2007
    Posts
    78

    Cool Accounting question

    A company makes three products A, B and C, which all require two types of machine: cutting machines and assembling machines. Estimates for next year include the following:

    Product A:
    Selling price (per unit): $25
    Sales demand (units): 2,500
    Direct material cost (per unit): $12
    Variable production cost (per unit): $7
    Time required per unit on cutting machines: 1 hours
    Time required per unit on assembling machines: 0.5 hours
    Product B:
    Selling price (per unit): $30
    Sales demand (units): 3,400
    Direct material cost (per unit): $13
    Variable production cost (per unit): $4
    Time required per unit on cutting machines: 1 hours
    Time required per unit on assembling machines: 1 hours
    Product C:
    Selling price (per unit): $18
    Sales demand (units): 5,100
    Direct material cost (per unit): $10
    Variable production cost (per unit): $3
    Time required per unit on cutting machines: 0.5 hours
    Time required per unit on assembling machines: 0.5 hours

    Fixed overhead costs for next year are expected to total $42,000. It is the company's policy for each unit of production to absorb these in proportion to its total variable costs. The company has cutting machine capacity of 5,000 hours per annum and assembling machine capacity of 8,000 hours per annum.

    a) From this information, determine (with supporting workings) which products in which quantities the company should plan to make next year.
    b) State the maximum price per product that would make it worth paying a subcontractor to carry out that part of the work the company could not do internally.
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Newbie
    Joined
    Jun 2014
    From
    Cheras
    Posts
    1

    Re: Accounting question

    how to see the answer?
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Super Member
    Joined
    Feb 2014
    From
    United States
    Posts
    539
    Thanks
    243

    Re: Accounting question

    Quote Originally Posted by Stevia View Post
    how to see the answer?
    probably no answer was given because no work was shown

    The way this site works is you (1) explain what is stopping you from even starting on the problem, (2) show the work you have done up to where you got stuck, or (3) show your work and ask us to confirm your answer. We provide help, not do people's homework.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. difficult managerial accounting question
    Posted in the Business Math Forum
    Replies: 1
    Last Post: July 19th 2010, 06:53 AM
  2. Accounting help please?
    Posted in the Business Math Forum
    Replies: 5
    Last Post: May 10th 2010, 05:08 AM
  3. Accounting question
    Posted in the Business Math Forum
    Replies: 2
    Last Post: October 1st 2009, 02:21 PM
  4. Another accounting question
    Posted in the Business Math Forum
    Replies: 1
    Last Post: September 28th 2009, 04:01 PM
  5. Accounting -Retained Earnings Question
    Posted in the Business Math Forum
    Replies: 0
    Last Post: May 10th 2008, 11:18 PM

Search Tags


/mathhelpforum @mathhelpforum