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# Answers_chapter 14 - Managerial Accounting(7th Indian...

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Managerial Accounting (7 th Indian Edition) Solutions for Select Problems of Chapter-14 Exercise 14-38 a) Minimum number = 8,000 jars. Exercise 14-39 a) Uno is a more profitable product. Exercise 14-40 1. Decision variables: X = number of units of Uno to be produced Y = number of units of Dos to be produced 2 Objective function: Maximize 3X + 12Y 3 Direct-labor time constraint: (1/24)X + (1/4)Y 10,000 Machine time constraint: 1X + 2Y 8,000 Exercise 14-41 Linear program: Graphical solution: Maximize 8X + 14Y Subject to: 2X + 2Y 24 1X + 3Y 24 X, Y 0

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Problem 14-42 1 a Manufacture 15,000 mixers Manufacture 20,000 blenders Purchase 13,000 mixers 2 Manufacture: 25,000 mixers Purchase: 3,000 mixers Purchase: 20,000 blenders Problem 14-43 Y 25 15 10 5 5 10 15 20 25 X Machine I constraint Optimal solution (X = 6, Y = 6) Objective function Machine II constraint 20 Feasible region
1 Net contribution to profit \$34,050 2 No, Jupiter lacks adequate machine capacity Problem 14-44 Basic Enhanced 1 Unit contribution margin \$158 \$200 3 Basic model. Problem 14-45 1 Tipton will be worse off by \$12,800 if it discontinues wallpaper sales. Problem 14-46 Home Model Deluxe Model Pro Model 1 Contribution margin \$24 \$18 \$25 Home model should be manufactured 2 Contribution margin per \$24 \$12 \$12.50 direct-labor hour Home model should be manufactured Problem 14-50 1 Sets result in a 20% increase, or 1,500 dresses (1,250 × 1.20 = 1,500).

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Answers_chapter 14 - Managerial Accounting(7th Indian...

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