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Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows: Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Required number of labor hours Required number of machine hours Table A Table B Table C $ 38 $ 42 $ 56 6 7 8 1 3 7 2 2 2 3 4 5 0.50 4.0 0.50 2.50 1.00 2.0 Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows: Table Table B Table 50,000 units 20.000 units 30,000 units Required: 1. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. Product Ranking Table A Table B Table C 2. Blossom has only 36,000 direct lobor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.) Product Units Produced 3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. Product Table A Ranking Table B Table C 4. If Blossom has only 230,000 machine hours available, calculate the number of units of each table thot Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences the product with first preference should be entered first.) Product Units Produced MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is aimed at children one to three years of age and includes tours" of a hypothetical town. Two products. The Pet Store Parade and The Grocery Getaway, have impressive sales. However, sales for the third CD in the collection, The Post Office Polka, have lagged the others. Several other CDs are planned for this collection, but none is ready for production MSI's Information related to the ToddleTown Tours collection follows: Segmented Income Statement for MSI'S Toddletown Tours Product Lines Pet Post Store Grocery Office Parade Getaway Polka Total Sales revenue $50,000 $45,000 $15,000 $110,000 Variable costs 23,000 19,000 10,000 52,000 Contribution margin $27,000 $26.000 $ 5,000 $ 58,000 Less Direct Fixed costs 4,800 3.100 3.500 11,400 Segment margin $22, 200 $22.900 $ 1.500 $ 46,600 Lesst Common fixed costs 14,400 12,960 4,320 31,680 Het operating income (lons) $ 7.800 $ 9,940 $12,820) $ 14,920 "Allocated based on total sales revenue. MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products. Required: 1. Calculate the incremental effect on profit if the POP product is eliminated. Answer is complete but not entirely correct. Effect on Profit $ (2,820) Decrease

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