The Dash Company Manufactures Two Products: a and B There Are 5,000 Machine Hours Available During the Quarter

question 54

Essay

The Dash Company manufactures two products: A and B. Information about the products is as follows: $\begin{array}{lrr}&\text { Product A } & \text { Product B }\\\text { Revenue per unit } & £ 150 & £ 125 \\\text { Variable costs per unit } & -80 & -70 \\\text { Contribution margin per unit } & \underline{£ 70} & \underline{£ 55}\\\\\text { Total demand } & 15,000 \text { units } & 12,000 \text { units } \\\text { Machine hours per unit } & .5 \mathrm{MH} & .25 \mathrm{MH}\\\end{array}$
There are 5,000 machine hours available during the quarter.

Required:
a.Which of the products should Dash Company produce if it can only produce one of the products?
b.Assume that Dash Company uses half of the hours available to produce Product A and half of the hours available to produce Product B. What is Dash's total contribution margin?
c.Assume that Dash Company produces the product mix that will maximize profit. What is Dash's total contribution margin?

Recognize the rights conferred by ownership of shares in a corporation.

Gain knowledge of the historical context and significance of federal statutes regulating securities.

Understand the use and variations of stock options within corporate structures.

Differentiate between the types of dividends a corporation can distribute.

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Definitions:

Temporal Lobes

Regions of the brain located beneath the temples, responsible for processing auditory information and involved in memory and emotion.

Short-term Memories

Memory stored for a brief period of time, usually for about 20 to 30 seconds, that holds a small amount of information before it is forgotten or transferred to long-term memory.

Retroactive Interference

The phenomenon where newly learned information interferes with the recall of information learned previously.

Newer Information

Recently acquired data or knowledge that updates or supersedes previous understanding.