Quick Inc. produces three products. Data concerning the selling prices and unit costs of the...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Quick Inc. produces three products. Data concerning the selling prices and unit costs of the three products appear below:
|
| Products | ||
|
| A | B | C |
| Selling price | $60 | $70 | $80 |
| Variable costs | 50 | 40 | 64 |
| Fixed costs | 25 | 8 | 22 |
| Grinding machine time per unit | 5 min | 10 min | 4 min |
Fixed costs are applied to the products on the basis of direct labour hours. Demand for the three products exceeds the company's productive capacity. The grinding machine is the constraint, with only 2,400 minutes of grinding machine time available this week. Required: PLEASE SHOW ALL OF YOUR CALCULATIONS FOR FULL MARKS. a) Given the grinding machine constraint, which product should be emphasized? Support your answer with appropriate calculations.
b) If there is still unfilled demand for the product that the company should emphasize in part a) above, up to how much should the company be willing to pay for an additional hour of grinding machine time?
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.