The Dot Company manufactures two product: X and Y. The contribution margine per

Question

The Dot Company manufactures two product: X and Y. The contribution margine per unit is determined as follows: Total demand for Product X is 16,000 units and for Product Y is 8,000 units. Machine hours is a scarce resource. During the year, 42,000 machine hours are available. Product X requires 6 machine hours per unit, while Product Y requires 3 machine hours per unit How many units of Products X and Y should Dot Company produce? WJE Company has only 4,000 machine hours available each month. The following information on the company's three products is available: If demand exceeds the available capacity, in what sequence should orders be filled to maximize the company's profits? N-Famous Department Stores marks up its merchandise by 125 percent of original cost. For an item recently purchased for $40, the total markup is

Explanation / Answer

28) X Y Sales 130 80 VC 70 38 Contribution 60 42 Demand 16000 8000 Machine hour required    96,000        24,000 (hrs* demand) Contribution per hour 10 14 units to produce      3,000           8,000 X= (42000-24000)/6 29) A B C contribution per unit-I 10 13 5 Machine hours per unit - II 2 1.5 0.5 contibution per hour(I/II) 5 8.67 10 c) First c, B second, A third. (based on contribution margin per hour) 30) purchase cost 40 Total mark up 50 (40*125%)

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