124. A company has already incurred an $81,000 cost in partially producing its three products. Their selling prices when partially and fully processed are shown in the table below with the additional costs necessary to finish their processing. Based on this information, should any products be processed further?
Product
Unfinished Selling Price
Finished Selling Price
Further Processing Costs
A
$43.20
$81.10
$29.74
B
$51.16
$85.73
$36.61
C
$70.50
$97.22
$23.32
125. A company has already incurred a $93,000 cost in partially producing its three products. Their selling prices when partially and fully processed are shown in the following table with the additional costs necessary to finish their processing. Based on this information, should any products be processed further?
$31.27
$62.37
$33.76
42.56
96.11
49.82
89.01
102.72
17.29
126. A company produces three different products that all require processing on the same machines. There are only 17,000 machine hours available in each year. Production information for each product is:
Sales price per unit
$22.00
$34.00
$46.00
Variable costs per unit
$10.00
$19.00
$25.30
Machine hours necessary to produce one unit
.75
1.2
2.3
Required:a. Determine the preferred sales mix if there are no market constraints on any of the products.b. Determine the preferred sales mix if the demand is limited to 7,000 units for each product.c. Determine the preferred sales mix if the demand is limited to 8,000 units for each product.
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