Healthier Cook Company manufactures two products: toaster ovens and bread machin
ID: 2499236 • Letter: H
Question
Healthier Cook Company manufactures two products: toaster ovens and bread machines. The following data are available:
Toaster Ovens
Bread Machines
Sale price
$80
$150
Variable costs
$40
$70
Healthier Cook can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Healthier Cook's production capacity is 1,800 machine hours per month. What is the contribution margin per machine hour for toaster ovens?
A) $235
B) $320
C) $7
D) $20
Delleate Inc. has prepared the following purchases budget:
Month
Budgeted Purchases
June
$67,000
July
72,500
August
76,300
September
73,700
October
69,200
All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate balance of Accounts payable at the end of October.
A) $77,680
B) $91,760******
C) $69,330
D) $74,290
Toaster Ovens
Bread Machines
Sale price
$80
$150
Variable costs
$40
$70
Explanation / Answer
Q. 2. The balance of Accounts payable at the end of October:-
= 40 % of september month purchases + 90% of october month purchases
= 40 % of 73700 + 90% of 69200
= 29480 + 62280
= $ 91760
Conclusion:- Balance of Accounts payable at the end of October will be $ 91760. Option B is the right answer.
Q. 1. Contribution margin per machine hour for Toaster oven = ( 80 - 40) * 6
= 40 * 6
= $ 240
Contribution margin per machine hour for Bread Machine = ( 150 - 70) * 4
= 80 * 4
= $ 320
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