Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. aaron co produces three different pet carriers- in

Aaron Co produces three different pet carriers- in its manufacturing facility- I101, J220 & K450....

60.1K

Verified Solution

Question

Accounting

Aaron Co produces three different pet carriers- in its manufacturing facility- I101, J220 & K450. Unit data for the three products follows:

Products

I101

J220

K450

Selling Price

$80

$55

$60

Variable Costs

Direct Materials

30

24

27

Labor and other costs

25

19

21

Estimated Demand

300 Units

275 Units

295 Units

All three products use the same direct materials, Metal. Metal costs $3 per pound and a maximum of 7,000 pounds is available each month. Aaron must produce a minimum of 200 units of each product.

I. How many units of product I101, J220 and K450 should Aaron produce? (8)

II. What is the maximum amount Aaron would be willing to pay for another 500 pounds of metal? How many extra units they will be able to manufacture? (5)

III. Assume that 600 pounds of metal got spoiled due to an accident. Calculate the optimal product mix again in this situation. (5)

IV. Determine the number of units Aaron will have to sell to break even? (Assume fixed cost will be $584,800 and sales-mix will be 40% I101, 35% J220 and 25% K450) (8)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Give one (1) example of a Tumour-Suppressor. Explain what its function is, what pathway(s) It is involved in,...

Accounting
1.2K views

Accounting
1.2K views

Matheson Electronics has just developed a new electronic device that it believes will have broad...

Accounting
1.2K views

You must record the payments after the company has printed and mailed the checks. Begin...

Accounting
1.2K views

UCW Bookstore incurred cost of goods manufactured totalling $700,000, manufacturing overhead of $320,000, and direct...

Accounting
1.2K views

Using the following accounts and balances, prepare the Stockholders Equity section of the balance sheet....

Accounting
1.2K views

As of January 1, Year 2, Room Designs, Incorporated had a balance of $3,700 in...

Accounting
1.2K views

NPV and IRR Each of the following scenarios is independent. All cash flows are after-tax...

Accounting
1.2K views

True or False and Why? If a bank reconciliation includes interest revenue, a journal entry...

Accounting
1.2K views

Management Accounting course Majestic Lodge* This case was originally set in the...

Finance
1.2K views

You have a stock with a price of 150 annualized volatility 30% and annualized risk...

Accounting
1.2K views

CH11HW Practice (i) Seved Required: Prepare the operating activities section of the statement of cash...