Admirable Inc. makes three products in a single facility. Data concerning these products follow: Product A B C Selling price per unit $72.70 $77.10 $76.10 Direct materials $33.10 $40.60 $46.40 Direct labor $22.00 $13.10 $7.20 Variable manufacturing overhead $4.60 $4.40 $3.30 Variable selling cost per unit $1.60 $3.20 $2.00 Mixing minutes per unit 2.8 1.9 2.6 Monthly demand in units 3,000 1,300 2,200 The mixing machines are potentially the constraint in the production facility. A total of 14,800 minutes are available per month on these machines. Direct labor is a variable cost in this company. How much of each product should be produced to maximize net operating income

Greater concern for innovation and quality has shifted the job trend to using more broadly defined jobs. t/f

Materials purchases (on credit). direct materials used in production. direct labor paid and assigned to work in process inventory. indirect labor paid and assigned to factory overhead. overhead costs applied to work in process inventory. actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) transfer of jobs 306 and 307 to finished goods inventory. cost of goods sold for job 306. revenue from the sale of job 306. assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions.

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i. e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.