Zip-Up Company Provides the Following Data Developed for Its Master

question 100

Essay

Zip-up Company provides the following data developed for its master budget:
$\begin{array}{c}\begin{array}{|l|}\hline \text {Sales price}\\\hline \text {Costs:}\\\hline \text {Direct materials}\\\hline \text {Direct labor}\\\hline \text {Variable overhead}\\\hline \text {Factory depreciation}\\\hline \text {Supervision}\\\hline \text {Selling expense}\\\hline \text {Administrative cost}\\\hline \end{array}\begin{array}{l|}\hline \$ 11.00 \text { per unit }\\\hline \\\hline \$ 3.00 \text { per unit } \\\hline \$ 4.75 \text { per unit } \\\hline \$ 0.50 \text { per unit } \\\hline \$ 12,000 \text { per month } \\\hline \$ 13,000 \text { per month } \\\hline \$ 0.25 \text { per unit } \\\hline \$ 9,000 \text { per month }\\\hline \end{array}\end{array}$
Required:
Prepare flexible budgets for sales of 20,000, 22,000 and 24,000 units. Use a contribution margin format.

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Definitions:

Linear Programming

A technique for mathematical modeling that aims to find the optimal result within a mathematical model characterized by linear relationships.

Constraints

Limitations or restrictions that affect the planning and execution of projects, strategies, or processes.

Graphical Origin

The point on a graph where the x-axis and y-axis intersect, typically representing the zero point for both axes.

Feasible Region

In optimization problems, the set of all possible points that satisfy the constraints, representing solutions that meet the problem's criteria.