It costs Mills, Inc. $9 per unit to manufacture 2,000 units per month of a...
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It costs Mills, Inc. $9 per unit to manufacture 2,000 units per month of a product that it can sell for $38 each. Alternatively, Mills could process the units further into a more complex product, which would cost an additional $22 per unit. Mills could sell the more complex product for $59 each. How would processing the product further affect Mills' profit?. If a decrease, place a sign in front of your answer.
Duncan Inc. has two divisions, Parker and Ginobili. Following is the income statement for the past month:
Parker
Ginobili
Sales
$
760,700
$
312,100
Variable Costs
288,200
196,700
Contribution Margin
$
_____________
$
___________
Fixed Costs (allocated)
238,900
173,800
Profit Margin
$
____________
$
_________
What would Duncan's profit margin be if the Ginobili division was dropped?
If a loss, indicate with a - (negative sign) before your answer. Example: a loss of $1,000 would be answered -1,000
Deacon Inc. produces leather handbags. The production budget for the next four months is: July 5,840 units, August 6,810, September 7,300, October 8,530. Each handbag requires 0.4 square meters of leather. Deacon Inc.s leather inventory policy is 25% of next months production needs. If the leather policy is met, what will the July 31 inventory be?
Gasols Production Inc required production for the next quarter is as follows:
January 11,800
February 13,280
March 14,140
Each unit requires 3 pounds of material. Given a desired ending inventory of 20% of the next months production needs, the amount of pounds to be purchased in February is
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