Use the following data for the next 2 questions:
A manufacturer operating with excess capacity has been asked to fill a special order at $7.25 per unit. The regular price is $10 per unit. No other use of the currently idle capacity can be found. The manufacturer's usual variable costs per unit are $3.50 for direct materials, $2.00 for direct labor, $1.00 for variable overhead, and $0.50 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost per unit is $0.25.
-Tyke, Inc. produces 2 products A and B, each requiring direct material and labor. Total labor available is 200 hours, and 300 pounds of material. Each unit of A sells for $10, and B sells for $15. Given the following linear programming information: What are the variable costs per unit for A and B?
A) $4 and $15
B) $14 and $19
C) $6 and $10
D) $7 and $14

Question

Use the following data for the next 2 questions:
A manufacturer operating with excess capacity has been asked to fill a special order at $7.25 per unit. The regular price is $10 per unit. No other use of the currently idle capacity can be found. The manufacturer's usual variable costs per unit are $3.50 for direct materials, $2.00 for direct labor, $1.00 for variable overhead, and $0.50 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost per unit is $0.25.
-Tyke, Inc. produces 2 products A and B, each requiring direct material and labor. Total labor available is 200 hours, and 300 pounds of material. Each unit of A sells for $10, and B sells for $15. Given the following linear programming information:  What are the variable costs per unit for A and B?
A) $4 and $15 
B) $14 and $19 
C) $6 and $10 
D) $7 and $14

Quizplus · Accepted Answer

The Answer of Use the following data for the next 2 questions:
A manufacturer operating with excess capacity has been asked to fill a special order at $7.25 per unit. The regular price is $10 per unit. No other use of the currently idle capacity can be found. The manufacturer's usual variable costs per unit are $3.50 for direct materials, $2.00 for direct labor, $1.00 for variable overhead, and $0.50 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost per unit is $0.25.
-Tyke, Inc. produces 2 products A and B, each requiring direct material and labor. Total labor available is 200 hours, and 300 pounds of material. Each unit of A sells for $10, and B sells for $15. Given the following linear programming information:  What are the variable costs per unit for A and B?
A) $4 and $15 
B) $14 and $19 
C) $6 and $10 
D) $7 and $14

Use the Following Data for the Next 2 Questions