12-06Pr_5e

# 12-06Pr_5e - Contribution margin per reactor hour for...

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Problem 12-6 Name: Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) will appear beside, above or below an incorrect answer. 1. Ethylene Butane Ester Selling price Variable conversion cost per unit Direct materials cost per unit Total cost per unit Contribution margin per unit 2. Ethylene Butane Ester Contribution margin per unit Reactor (bottleneck) hours per unit ÷ Contribution margin per Reactor hour Which product is the most profitable? Explain (select from the drop-down list): 3. Revised price of Ethylene: - = Reactor hours of Ethylene per unit - = Instructions One way to revise the pricing would be to increase the price to the point where all

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Unformatted text preview: Contribution margin per reactor hour for Butane Revised price of Ethylene Variable cost per unit of Ethylene Revised price of Ethylene = Revised price of Ethylene (Price required of Ethylene to deliver the same contribution margin per bottleneck hour as does butane.) Revised price of Ester: Revised price of Ester-= Reactor hours of Ethylene per unit Revised price of Ester-= = Revised price of Ester (Price required of Ester to deliver the same contribution margin per bottleneck hour as does butane.) Contribution margin per reactor hour for Butane Variable cost per unit of Ester...
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## This note was uploaded on 05/02/2011 for the course ACC 121 taught by Professor Thomas during the Spring '08 term at Baker MI.

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12-06Pr_5e - Contribution margin per reactor hour for...

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