Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. healthy snacks produces regular and organic granol

Healthy Snacks produces regular and organic granola bars. The regular granola bar is sold at...

80.2K

Verified Solution

Question

Accounting

Healthy Snacks produces regular and organic granola bars. The regular granola bar is sold at $2 each, and the organic granola bar is sold at $3.50 each. The variable cost of making the regular granola bar is $1.20 each. It costs an extra $0.80 to make the organic granola bar. It takes 5 labor hours to produce 1,000 regular granola bars and 8 labor hours to produce 1,000 organic granola bars. There are 3,000 hours of labor time available for production each week. The maximum weekly sales for the regular and organic granola bars are 20,000 and 8,000 units, respectively. Fixed production costs total $200,000 per year. All selling costs are fixed.

Required: (a) Calculate the optimal production level in number of units for each product. (b) Prepare an income statement for the company based on the optimal production level. (c) Calculate the company's tax liability assuming a tax rate of 22%.

Answer & Explanation Solved by verified expert
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

In mid-2009, Rite Aid had CCC-rated, 66-year bonds outstanding with a yield to maturity of 17.3...

Finance
Q

Discuss data collection methods used in the world around us. Tell us what method (random sample...

Basic Math
Q

THERMODYNAMIC The specifications of a typical reciprocating internal combustion engine coupled with a generator are given in Table...

Mechanical Engineering
Q

9. For the differential equation: ??? + 2?? + 5? = ?(?) (a) Write down the...

Advance Math
Q

Explore the properties of angles and arcs formed by two intersecting secants 1 Find the...

Geometry
Q

What is the circumference of the Arctic Circle Latitude 66 32 N The radius of...

Basic Math
Q

Which organization promulgates generally accepted accounting principles (GAAP) in the U.S.? This is something you...

Accounting
Q

Equity is the Amount of a company's capital which is owned by the shareholders. In...

Accounting
Q

Eli Orchid has designed a new pharmaceutical product, Orchid Relief, which improves the night sleep....

Accounting
Q

What function does the receiving department serve in the revenue cycle

Accounting
Q

please help solve Schedule of cash payments for a service company EastGate...

Accounting
Q

A two-year Treasury bill offers a 3.9% yield to maturity. The market's concensus forecast is...

Finance