Workshop One Answers for students Acct 3104 Semester 2 2009

Workshop One Answers for students Acct 3104 Semester 2 2009...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Workshop One Acct 3104 Semester 2 2008 11 August Question One – Product Mix Requirement 1 Machine hours per pair of manufactured skates 1.50 machine-hours Machine hours per pair of manufactured bindings 0.50 machine-hours Cost of unused capacity when only bindings produced (to estimated annual demand) $6,000 Requirement 2 Variable manufacturing overhead cost per machine hour $8 Requirement 3 Manufactured Manufactured Purchased skates bindings skates Contribution margin per unit $33 $20 $19 Contribution margin per machine hour $22 $40 Requirement 4 Manufactured Purchased Skates Bindings Skates Total Pairs produced (or purchased) and sold 1,000 12,000 6,000 Contribution margin $ 33,000 $ 240,000 $ 114,000 $ 387,000 Fixed manufacturing cost 30,000 Fixed marketing cost 60,000 Operating income $ 297,000 Question Two – Make versus buy decisions 1. Total manufacturing costs per board = $339.00 2. Should continue to make the boards will have greater operating income
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/30/2009 for the course BUSINESS ACCT3104 taught by Professor Sandra during the Spring '09 term at École Normale Supérieure.

Page1 / 2

Workshop One Answers for students Acct 3104 Semester 2 2009...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online