Ring Corporation Manufactures Two Types of Tables: Small and Large

question 98

Essay

Ring Corporation manufactures two types of tables: Small and Large.The following data is available:
Total fixed costs are $9,600.Ring Corporation can sell a maximum of 1,000 units of each size of table.Machine hour capacity is 8,000 hours per year.
Required:
A)Which table has the highest contribution margin per unit?
B)Which table has the highest contribution margin per machine hour?
C)How many tables of each size should be produced to maximize operating income?

• A)Which table has the highest contribution margin per unit?
• B)Which table has the highest contribution margin per machine hour?
• C)How many tables of each size should be produced to maximize operating income?

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Definitions:

Certify Accuracy

To officially affirm or validate the truthfulness and correctness of information or data.

Sarbanes-Oxley Act

A federal law established in the United States in 2002 that aims to safeguard investors through the enhancement of the precision and dependability of company reports.

Outside Directors

Board members who are not part of the company's day-to-day operations, providing independent oversight and insight.

Publicly Traded

Refers to a company whose shares are available for purchase by the general public on a stock exchange.