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Cost Ch 3 Project.

# Cost Ch 3 Project. - Among(192,000-76,800 =1,15,200...

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Chapter 3 Collaborative Problem 3-49 SAIKAT MITRA 1/ T.F.C= 96,000*49=4,704,000 76,800*29.50=2,265,600 Calculations Breakeven Point Peoria: Per Unit cost Peoria Moline Total Variable Cost= 72+14=\$86 Total Fixed Cost= 30+19=\$49 Contribution Margin= 150-86=\$64 2/ Operating Income Total Units= 400*240=96,000units Peoria Moline 18.50*76,800 =\$1,420,800 Add: (18.50-8.00)*19,200 = 201,600 Moline: Per Unit Cost \$1,622,400 Total Variable Cost= 88+14=\$102 Total Fixed Cost/unit = 15+14.50=\$29.50 Contribution Margin = 150-102=\$48 192,000 units, First 76,800 Units should be allocated to Moline. Total Units= 320*240=76,800 Units
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Unformatted text preview: Among (192,000-76,800) =1,15,200 remaining units should be allocated to Peoria because Peoria's cost for both first 96,000 units and any additional upto 120,000 units is more profitable than Moline *Peoria's Operating Income after regular capacity is (15-3)=\$12per unit *Moline's O.I. after regular capacity is (18.50-8.00)=\$10.00per unit 4,704,000/64= 73,500 Units 2,265,600/48= 47,200 Units 15*96,000 = \$1,440,000 3/ Moilne's first 76,800 Units are most profitable so among the So Moline gets 76,800 Units & Peoria gets 115,200 Units to produce...
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