The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Date concerning those products appear below.

WX KD FS
Selling price per unit $335.20 $228.48 $199.23
Variable cost per unit $259.22 $173.04 $159.57
Minutes on the constraint 7.70 4.50 5.70

Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? Round intermediate calculations to 2 decimal places.

a. $75.98 per minute
b. $6.96 per minute
c. $39.66 per minute
d. $12.32 per minute

Answers

Answer 1

Answer:

the least profitable is $39.66 per unit or 9.72 per minute

Explanation:

The computation is shown below:

The Price Per Unit for WX is

= $355.20 - $259.22

= $95.98

Price Per Unit for KD is

= $228.48 - $173.04

= $55.44

And, the Price Per Unit for FS is

= $199.23 - $159.57

= $39.66

Now

Price per Minute for WX is

= $95.98 ÷ 7.70

= 12.46

Price Per Minute for KD is

= $55.44 ÷ 4.50

= 12.32

And, Price Per Minute for FS is

= $55.44 ÷ 5.70

= 9.72

So here the least profitable is $39.66 per unit or 9.72 per minute

This is the answer but the same is not provided


Related Questions

Although the cost-plus method approach to product pricing may be used by management as a general guidance, when are some examples of other factors that managers should also consider in setting product prices?

Answers

Answer: value-based pricing.

Explanation:

In its literal sense, value-based pricing means basing pricing on the advantages of the product perceived by the consumer rather than on the exact cost of product creation. A painting, for example, may be priced as much more than canvas and paint prices: in fact, the price depends a lot on who the painter is.

Shelby Cabinets, Inc. produces custom cabinets. The following inventory balances appeared on its balance sheet.


12/31/2012

12/31/2011

Raw materials inventory

$ 8,000

$ 10,000

Work-in-process inventory

600,000

550,000

Finished goods inventory

350,000

410,000



Shelby Cabinets had $1,265,000 in sales for the year ended December 31, 2012. The company also had the following costs for the year:



Selling

$ 90,000

General and administrative

$240,000

Raw materials purchases

$100,000

Direct labor used in production

$125,000

Manufacturing overhead

$630,000



Of the total raw materials placed in production for the year, $12,000 was for indirect materials and must be deducted to find direct materials placed in production.



Using the above information, what was Shelby’s Cost of Goods Manufactured?

(Hint: You must first calculate Direct materials placed in production before calculating the Cost of Goods Manufactured.)

Group of answer choices

$795,000

$845,000

$855,000

$1,395,000

Answers

Answer:

$855,000 yippie!!!

Melinda signs a three year contract for employment as a legal studies lecturer. Does this type of contract fall within the scope of the statute of frauds

Answers

Answer: Yes, because it is a contract whose terms prevent possible performance within one year

Explanation:

The Statute of Fraud mandates that certain contracts need to be written down. These contracts include the sale of land, amounts involving more than $500 and contracts that have a timeframe of over a year.

Melinda entered into a contract with terms that have to be fulfilled in more than a year. It is therefore under the Statute of Frauds.

X Corporation and its two divisions, Domestic and Foreign, appear below:

Sales revenues, Domestic $640,000
Variable expenses, Domestic $371,300
Traceable fixed expenses, Domestic $76,500
Sales revenues, Foreign $493,900
Variable expenses, Foreign $281,800
Traceable fixed expenses, Foreign $63,900

In addition, X's common fixed expenses totaled $173,300 and were allocated as follows: $90,000 to the Domestic division and $83,300 to the Foreign division.

What is the segment margin for the Domestic division?

a. $178,700
b. $371,300
c. $102,200
d. $192,200

Answers

Answer:

d. $192,200

Explanation:

Preparation for What is the segment margin for the Domestic division

DOMESTIC division FOREIGN division

Sales revenues $640,000 $493,900

Less Variable expenses ($371,300) ($281,800)

Contribution margin $268,700 $212,100

($640,000-$371,300) ($493,900-$281,800)

Less Traceable fixed expenses ($76,500) ($63,900)

SEGMENT MARGIN $192,200 $148,200

(268,700-$76,500) (212,100-$63,900)

Therefore the segment margin for the Domestic division will be $192,200

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