Minaya Corporation Has Two Products, M20 and Y53, That Use

question 69

Essay

Minaya Corporation has two products, M20 and Y53, that use the same constrained resource--a critical raw material. Data concerning those products follow: $\begin{array}{lrr}&\text { M20 } &{\text { Y53 }} \\\text { Selling price. }&\$ 192.00 & \$ 220.00 \\\text { Variable cost }&\$ 153.60 & \$ 176.00 \\\text { Constrained resource required per unit (grams) }&8 & 10 \\\text { Demand (units) }&820 & 760\end{array}$ The total amount of the constrained resource available is 9,900 grams.
Required:
a. Which product is most profitable, given the company's constraint?
b. How much of each product should be produced?
c. What is the total contribution margin if your plan in part (b) above is followed?

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Definitions:

Equity Investments

Investments in stock or equity interests in entities, representing ownership interest.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries have been made, used to prepare financial statements.

External Reporting

The process of providing financial statement information to external stakeholders such as investors, creditors, and regulatory agencies.

Statement of Income

A financial document that shows a company's revenues, expenses, and profits or losses over a specific period of time.