Ex. The Jackson company produces 2 different products, each with unlimited demand. If there are 4000 total available labor hrs, and the company desires to max its contribution
margin, how many units of each product should be produced?
Selling price per un
Chapter 1 & 2 Homework
a) The value of scrapping the action figures is $1000.
b) The value of reworking the action figures and selling them to the toy store is
$1200 - $750 = $450.
With 5000 units:
-Contribution Margin = revenue variable costs
-CM only focuses on variable costs
-Unit CM = CM/unit or Price Unit variable costs
-Profit = CM Fixed Cost
-Revenue= Sales x Price
-Total Cost = FC + Unit VC x VolumeHIGH
-High-Low Method: Unit VC = TC(hi
a) Desiredendinginventory(February)15%ofSales(March)= 2250
b) Beginninginventory(March)Desiredendinventory(February)= 2250
Number of Units
Labor hours per unit
Price per unit
A. Capacity cost are controllable over the long term.
A. Ajays decision deals with excess demand due to the increased demand of his
products during the holiday season.
B. calculate profit = revenues variable costs fixed costs
($3 x 60; $3 x 110)
($1 x 60; $1 x