Professional Documents
Culture Documents
(2018003501)
Section: 5
PROBLEM 1:
A. Supplies cost – RELEVANT
Assembly cost – RELEVANT
Power cost – NOT RELEVANT
Inspection cost – RELEVANT
B. $30,000
PROBLEM 2: ($54,000)
PROBLEM 3:
A. ($39,000)
B. ($92,000)
PROBLEM 4:
A. $43.80
B. ($52,000)
C. $2,020,000
PROBLEM 5: $ 18,000
PROBLEM 6:
A. Product G should be emphasized because it has the greatest contribution margin per
unit of the scarce resource.
B. If additional milling machine time would be used to produce more of Product G, the
time would be worth 60 minutes per hour × $15 per minute = $900 per hour.
PROBLEM 7: Products D and G should be sold after further processing beyond the split-off point.
Product F should be sold at the split-off point without any further processing.
Name: Dañas, Maria Mengee D. (2018003501)
Section: 5