Mack Co. manufactures four different products. Because the quality of its products is high, the demand for them is more than the company can produce….

[ad_1]

Mack Co. manufactures four different products. Because the quality of its products is high, the demand for them is more than the company can produce. Based on the enquiries made by the current and potential customers, you have estimated the following for the coming year:

Don't use plagiarized sources. Get Your Custom Essay on
Mack Co. manufactures four different products. Because the quality of its products is high, the demand for them is more than the company can produce….
Just from $13/Page
Order Essay

Product A: Estimated demand in units = 8,000 Sell price per unit = direct materials cost per unit = $5 and direct labour cost per unit = $5

Product B: Estimated demand in units = 24,000 Sell price per unit = direct materials cost per unit = $10 and direct labour cost per unit = $9

Product C: Estimated demand in units = 20,000 Sell price per unit = 0 direct materials cost per unit = $25 and direct labour cost per unit = $30

Product D: Estimated demand in units = 30,000 Sell price per unit = 0 direct materials cost per unit = $15 and direct labour cost per unit = $20

The following info is also available:

  1. the direct labour rate is $15 per hour and the factory has a capacity of 80,000 hours. For the next year, Mack is unable to expand this capacity.
  2. Mack is unwilling to increase its selling prices
  3. Apart from direct materials and direct labour, the only other variable expense is variable overhead. the variable overhead is 50% of the direct labour cost
  4. fixed manufacturing overhead is estimated to be $1 million for the coming year. Fixed marketing and admin expenses are estimated to be $750,000 for the coming year

*calculate the contribution margin and prepare incremental analysis for maximizing operating income. Determine which products and how many units of each Mack should produce in the coming year to maximize its operating income

Show more



[ad_2]

Source link

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code BANANA