Question Details

(Solution Download) Exercise 6-11 Spencer Company manufactures and sells three products. Relevant per unit data concerni


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise 6-11

 

Spencer Company manufactures and sells three products. Relevant per

 

unit data concerning each product are given below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

A

 

 

B

 

 

C

 

Selling price$8$12$15
Variable costs and expenses$3$10$12
Machine hours to produce212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LINK TO TEXT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partially correct answer.Your answer is partially correct. Try again.

 

(1) Compute the contribution margin per unit of

 

the limited resource (machine hours) for each product.

 

(Round contribution margin per unit to 2 decimal

 

places, e.g. 1.25.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product A

 

 

Product B

 

 

Product C

 

Contribution margin per unit of limited resource

 

$Entry field with incorrect answer

 

 

$Entry field with correct answer

 

 

$Entry field with incorrect answer

 

 


 

(2) Assuming 1,500 additional machine hours are

 

available, which product should be manufactured? Entry field with correct answer Product AProduct BProduct C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LINK TO TEXT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partially correct answer.Your answer is partially correct. Try again.

 

Prepare an analysis showing the total contribution margin if the

 

additional hours are:

 


 

(1) Divided equally among the products.

 

(Round contribution margin per unit to 2 decimal

 

places, e.g. 1.25.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

A

 

 

B

 

 

C

 

Machine hours

 

Entry field with incorrect answer

 

 

Entry field with incorrect answer

 

 

Entry field with incorrect answer

 

Contribution margin per unit of limited resource

 

$Entry field with incorrect answer

 

 

$Entry field with correct answer

 

 

$Entry field with incorrect answer

 

Total contribution margin

 

$Entry field with incorrect answer

 

 

$Entry field with incorrect answer

 

 

$Entry field with incorrect answer

 

 

 

 

 

 

 

 

 

 

The total contribution margin

 

$Entry field with incorrect answer

 

 


 

(2) Allocated entirely to the product identified

 

above.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machine hours

 

Entry field with incorrect answer

 

Contribution margin per unit of limited resource

 

$Entry field with incorrect answer

 

Total contribution margin

 

$Entry field with incorrect answer

 

 

 

 

 

 

 

 

 

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