80.2K

Verified Solution

Link Copied!

Hamilton, Inc. has two divisions, Parker and Blaine. Following is the income statement for the previous year: Sales Variable costs Contribution Margin Fixed Costs Profit Margin Parker Blaine $1,200,000 $ 800,000 600,000 450,000 $ 600,000 $ 350,000 450,000 390,000 150,000 $(40,000) ta Of the total fixed costs, $600,000 are common fixed costs that are allocated equally between the divisions. What is Parker's segment margin? Multiple Choice $150,000 $450,000 O $600,000 $1,200,000 Spring, Inc. manufactures two products. It currently has 1,000 hours of direct labor and 2,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. Unit contribution margin Demand Labor time Machine time Product A Product B $15.00 $12.00 1,000 units 2,000 units hour 1 hour 1 hour 1 hour What is the total contribution margin if Spring, Inc. prioritizes production according to its limited resources? Multiple Choice $39,000 O O $15,000 O $24,000 $18,000 Friar Corp. sells two products. Product A sells for $100 per unit, and has unit variable costs of $60. Product B sells for $70 per unit, and has unit variable costs of $50. Currently, Friar sells three units of product B for every one unit of product A sold. Friar has fixed costs of $750,000. What is Friar's break-even point in units? Multiple Choice 30,000 units of A and 30,000 units of B 7,500 units of A and 22,500 units of B 22,500 units of A and 7,500 units of B 15,000 units of A and 15,000 units of B

Answer & Explanation Solved by verified expert

See Answer