Accounting Help (1)

# An automated turning machine is the current

• Notes
• 15
• 63% (8) 5 out of 8 people found this document helpful

This preview shows pages 13–15. Sign up to view the full content.

An automated turning machine is the current constraint at Naik Corporation. Three products use this constrained resource. Data concerning those products appear below: KU OP YY Selling price per unit \$104.93 \$528.13 \$558.07 Variable cost per unit \$ 82.07 \$429.74 \$420.04 Minutes on the constraint 1.80 9.10 9.30 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places.) OP, KU, YY KU, YY, OP YY, KU, OP YY, OP, KU 32.

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

Consider the following production and cost data for two products, X and Y: Product X Product Y Contribution margin per unit \$35 \$35 Machine-hours needed per unit 7 hours 5 hours The company has 14,900 machine hours available each period, and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? \$119,200 \$89,400 \$104,300 \$89,880 33. Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs \$36,000 \$50,000 Processing costs \$42,000 \$42,000 Equipment rental \$10,200 \$28,100 Occupancy costs \$19,100 \$29,200 What is the differential cost of Alternative B over Alternative A, including all of the relevant costs? \$131,600 \$42,000 \$149,300 \$107,300 34. The book value of a machine, as shown on the balance sheet, is relevant in a decision concerning the replacement of that machine by another machine. True False 35. Gilde Industries is a division of a major corporation. Last year the division had total sales of \$24,483,900, net operating income of \$2,693,229, and average operating assets of \$5,502,000. The company's minimum required rate of return is 12%. Required: a. What is the division's margin? (Round your answer to 2 decimal places. Omit the "%" sign in
your response.) Margin % b. What is the division's turnover? (Round your answer to 2 decimal places.) Turnover c. What is the division's return on investment (ROI)? (Round you intermediate calculations and final answers to 2 decimal places. Omit the "%" sign in your response.) Return on investment %
This is the end of the preview. Sign up to access the rest of the document.
• Fall '12
• StephenD.Joyce

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern