167 the contribution margin per unit of constraint is calculated as a contribution m 4308052

167 the contribution margin per unit of constraint is calculated as a contribution m 4308052

167) The contribution margin per unit of constraint is calculated as

A) contribution margin per unit × constraint per unit.

B) contribution margin per unit × units per constraint.

C) contribution margin per unit ÷ units per constraint.

D) contribution margin per unit + constraint per unit.

168) Companies with production constraints and irrelevant fixed costs will be most profitable when they maximize production of the product with the highest

A) sales price.

B) demand for the product.

C) contribution margin per unit of the constraint.

D) contribution margin per unit.

169) The factor that restricts production or sale of a product is which of the following?

A) Demanding factor

B) Constraint

C) Sunk factor

D) Relevant factor

170) A “constraint” is best described by which of the following?

A) The distribution of all products to be sold

B) A factor that restricts production or sales of a product

C) Benefits foregone by choosing a particular alternative course of action

D) Expected future costs that differ among alternatives

171) A “sales mix” is best described by which of the following?

A) A factor that restricts production or sales of a product

B) Costs that were incurred in the past and cannot be changed

C) Expected future costs that differ among alternatives

D) The relative number of all products to be sold

172) Which of the following could be a constraint for selling a product?

A) Store hours

B) Available labor hours for employees

C) Shelf space

D) All of the above could be constraints.

173) All of the following would be considered in evaluating product or sales mix allocations, except

A) deciding which product offers the lowest contribution margin per unit.

B) deciding whether fixed costs would change as a result of the product sales mix.

C) deciding upon any and all constraints associated with the product/sale mix.

D) deciding which products will contribute the highest contribution margin per unit.

174) Changing the product mix emphasis in the short run will usually not affect

A) total variable costs.

B) both total variable and total fixed costs.

C) total fixed costs.

D) total contribution margin.

Food ProcessorsEspresso Makers

Sales price$125$225

Variable costs$50$150

 

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month.

 

What is the contribution margin ratio for food processors?

A) 60.00%

B) 150.00%

C) 140.00%

D) 33.33%

176) Mama's Favorite Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available:

Food ProcessorsEspresso Makers

Sales price$125$225

Variable costs$50$150

 

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month.

What is the contribution margin per machine hour for espresso machines?

A) $1,125

B) $225

C) $150

D) $75

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