39) Custom Furniture manufactures a small table and a large table. The small table sells for $800, has variable costs of $520 per table, and takes eight direct labor hours to manufacture. The large table sells for $1,200, has variable costs of $720, and takes sixteen direct labor hours to manufacture. Calculate the contribution margin per direct labor hour for the small table.
A) $29 per direct labor hour
B) $32 per direct labor hour
C) $35 per direct labor hour
D) $36 per direct labor hour
40) Custom Furniture manufactures a small table and a large table. The small table sells for $800, has variable costs of $520 per table, and takes eight direct labor hours to manufacture. The large table sells for $1,200, has variable costs of $720, and takes sixteen direct labor hours to manufacture. Calculate the contribution margin per direct labor hour for the large table.
A) $30 per direct labor hour
B) $32 per direct labor hour
C) $35 per direct labor hour
D) $36 per direct labor hour
41) In making product mix decisions under constraining factors, which of the following is the key to choosing the product type to be maximized?
A) Revenue per unit
B) Contribution margin per unit of product
C) Contribution margin per unit of the constraining factor
D) Gross profit per unit using absorption costing
42) Custom Furniture manufactures a small table and a large table. The small table sells for $800, has variable costs of $520 per table, and takes eight direct labor hours to manufacture. The large table sells for $1,200, has variable costs of $720, and takes sixteen direct labor hours to manufacture. The company has a maximum of 4,800 direct labor hours per month when operating at full capacity. If there are no constraints on sales of either product, and the company could choose any proportions of product mix that they wanted, what is the maximum contribution margin the company could earn?
A) $122,000
B) $176,000
C) $154,500
D) $168,000
43) Custom Furniture manufactures a small table and a large table. The small table sells for $800, has variable costs of $520 per table, and takes eight direct labor hours to manufacture. The large table sells for $1,200, has variable costs of $720, and takes sixteen direct labor hours to manufacture. The company has a maximum of 4,800 direct labor hours per month when operating at full capacity. If there are no constraints on sales of either product, and the company could choose any proportions of product mix that they wanted, what is the optimum product mix to maximize operating income?
A) 900 units of small, 100 units of large
B) Zero units of small, 300 units of large
C) 300 units of small, 200 units of large
D) 600 units of small, zero units of large
44) A company sells two products with information as follows:
|
A
|
B
|
Price per unit
|
$10.00
|
$16.00
|
Variable cost per unit
|
$8.00
|
$11.00
|
Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. The company has a maximum of 2,000 machine hours available per month. Assume there are no constraints on sales of either product, and the company could choose any product mix they wish. What is the maximum amount of contribution margin that the company could earn in a month?
A) $16,000
B) $18,000
C) $20,000
D) $22,000
45) A company sells two products with information as follows:
|
A
|
B
|
Price per unit
|
$10.00
|
$16.00
|
Variable cost per unit
|
$8.00
|
$11.00
|
Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. The company has a maximum of 2,000 machine hours available per month. The company can sell up to 5,000 units of Product A per month, and up to 2,000 units of Product B for the month. What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints?
A) $16,000
B) $18,000
C) $20,000
D) $22,000
46) A company sells two products with information as follows:
|
A
|
B
|
Price per unit
|
$10.00
|
$16.00
|
Variable cost per unit
|
$8.00
|
$11.00
|
Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. The company has a maximum of 2,000 machine hours available per month. The company can sell up to 5,000 units of Product A per month, and up to 2,000 units of Product B for the month. What is the optimum product mix given the stated constraints?
A) 2,000 units of A, 4,000 units of B
B) 4,000 units of A, 2,000 units of B
C) Zero units of A, 4,000 units of B
D) 6,000 units of A, zero units of B