Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. buzz appliances manufactures two? products: food p

Buzz Appliances manufactures two? products: Food Processors and Espresso Machines. The following data are? available: Food Processors Espresso...

Free

80.2K

Verified Solution

Question

Accounting

Buzz Appliances manufactures two? products: Food Processors andEspresso Machines. The following data are? available:

Food Processors

Espresso Makers

Sales price

$ 165.00$165.00

$ 275.00$275.00

Variable costs

$ 60.00$60.00

$ 180.00$180.00

The company can manufacture two food processors per machine hourand three espresso machines per machine hour. The? company'sproduction capacity is

1 comma 6001,600

machine hours per month.

The company has demand of

1 comma 2001,200

espresso machines. How many espresso machines and foodprocessors should they produce based on demand and availablemachine? hours?

Answer & Explanation Solved by verified expert
3.8 Ratings (604 Votes)

Food processors Espresso makers
Sales price $                       165 $        275
Variable costs $                         60 $        180
Contribution margin $                       105 $          95
Units per machine hour 2 3
Contribution margin per machine hour $210 $285
Production 2400 1200
Workings:
(i) Production capacity per month 1600 hours
(ii) Production of Espresso machines 1200 units
(iii) Units per machine hour 3 units per hour
(iv) = [(ii) / (iii)] Production hours of Espresso machines 400 hours
(v) = [(i) - (iv)] Remaining capacity available 1200 hours
(vi) Units per machine hour 2 units per hour
(v) X (vi) Production of Food processors 2400 units
Note: Espresso makers have the higher contribution margin, therefore first it is beneficial to produce Espresso makers up their demand

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!
Become a Member

Other questions asked by students

Q

assign net SITI ZX Read It y son x DISZ

Basic Math
Q

Answer each with a few sentences please: 1. Epiphyseal plate function and increase in length of...

Biology
Q

195 1 Who do you contact if you have any questions during your survey a...

Biology
Q

A hot body at temperature T losses heat to the surrounding temperature Ts by radiation...

Physics
Q

Two people of different masses are holding identical bowling balls and are balanced on a...

Physics
Q

Question 4 A sector of a circle has a central angle of 150 Find the...

Basic Math
Q

Standard automobile license plates in a country display 2 numbers followed by 3 letters followed...

Statistics
Q

6 4 5x 16 8 1 5a 2 29

Algebra
Q

Nash Co. provides the following information about its postretirement benefit plan for the...

Accounting
Q

A common balanced scorecard measures performance in all of the following areas except: a.innovation and...

Accounting
Q

Question 44 of 75. When Mauricio's son went to college, he purchased a...

Accounting
Q

A taxpayer is active in three different passive activities none of which are real estate...

Accounting