Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. during a local outbreak of influenza, oin co. can

During a local outbreak of influenza, Oin Co. can only count on having 1,500 direct...

80.2K

Verified Solution

Question

Accounting

During a local outbreak of influenza, Oin Co. can only count on having 1,500 direct labour hours available each week. Oil Co. produces three products whose associated costs are provided below.

Product A Product B Product C
Sales price (per unit) $900 $600 $700
Pounds of direct materials needed per unit 5 lbs. 4 lbs. 6 lbs.
Direct labour hours needed per unit 4 dlh 2 dlh 5 dlh
VMOH cost (per unit) $40 $34 $45
FMOH cost (per unit) $50 $50 $50

Oin Co. purchases direct materials for $20 per pound. Their wage rate is $17 per direct labour hour.

Oin Co. needs to produce at least 120 units of each product each week.

What is the maximum contribution margin Oin Co. can earn each week, given the constraints on their inputs?

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

Do some research and explain how an antibody can be produced that reacts with another antibody

Programming
1.2K views

with C# create a console application project that outputs the number of bytes in memory that...

Psychology
1.2K views

Compare and contrast two theories of personality development in middle age. Are these theories mutually contradictory,...

Operations Management
1.2K views

Based on the final lecture material (PPT #6), kindly answer the following: What are some cultural restraints...

Accounting
1.2K views

imagine you start a company and you are the only sole propietor, explain the chart of...

Basic Math
1.2K views

Find the length of each side of the triangle determined by the three points P?,...

Algebra
1.2K views

Given the matrix A 1357. What is the inverse of A?A. -187-3-51B. 187-3-51C. -167-3-51O. 167-3-51

Algebra
1.2K views

6 Write an expression for the volume of a rectangular prism if the length is...

Algebra
1.2K views

A student simplified the rational expression using the steps shown 235 x 225 2 45...

Accounting
1.2K views

which of the following is NOT true about closing entries? a. there are four closing...

Accounting
1.2K views

The Appleton entity established a $200 Petty Cash fund on June 1, 200X On June...

Accounting
1.2K views

Harmon Production Company applies overhead to jobs. Which of the following is one effect of...