Sheridan, Inc. produces three types of balloons-small, medium, and large-with the following characteristics: Small Medium Large Selling price per unit $8 $11 $18 Variable cost per unit Contribution margin per unit $5.00 $6.00 $12.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 500 1,160 830 The company has only 2,000 machine hours available each month. How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.) Units Small Medium Large

Sheridan, Inc. produces three types of balloons-small, medium, and large-with the following characteristics: Small Medium Large Selling price per unit $8 $11 $18 Variable cost per unit Contribution margin per unit $5.00 $6.00 $12.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 500 1,160 830 The company has only 2,000 machine hours available each month. How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.) Units Small Medium Large

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: Question Content Area 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ___________ : ______________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans _______ Break-even table fans ______ 3. Prepare a contribution-margin-based income…
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Blossom, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $9 $8 $15 Variable cost per unit 3 5 6 Contribution margin per unit $6.00 $3.00 $9.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 620 1,100 950 The company has only 2,000 machine hours available each month.How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.) Units Small enter a dollar amount rounded to 0 decimal places Medium enter a dollar amount rounded to 0 decimal places Large enter a dollar amount rounded to 0 decimal places
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