Currently the sales clerks receive a salary of $7,000 per month in Store B. A proposal has been made to change from a fixed salary to a sales commission of 5%. Assume that this proposal is adopted, and that as a result sales increase by $20,000. What would be the new segment margin for Store B? Question Eight Utilization of Constrained Resources WuHan Paint Company – WuHan Paint Company makes three products in a single facility. These products have the following unit product costs: Products A B C Direct materials ¥22.50 ¥22.40 ¥29.20 Direct labor 13.60 11.40 12.50 Variable manufacturing overhead 3.00 3.40 4.50 Fixed manufacturing overhead 19.20 20.10 26.50 Unit product cost ¥58.30 ¥57.30 ¥72.70 Additional data concerning these products are listed below. Products A B C Mixing minutes per unit 3.30 1.70 1.80 Selling price per unit ¥74.70 ¥76.10 ¥87.50 Variable selling cost per unit ¥1.80 ¥2.40 ¥2.90 Monthly demand in units 4,000 2,000 4,000 The mixing machines are potentially the constraint in the production facility. A total of 23,200 minutes is available per month on these machines. Direct labor is a variable cost in this company. Required: How many minutes of mixing machine time would be required to satisfy demand for all three products? How much of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.) Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? off to the nearest whole RMB.) Question Nine (optional for extra credit) –
Currently the sales clerks receive a salary of $7,000 per month in Store B. A proposal has been made to change from a fixed salary to a sales commission of 5%. Assume that this proposal is adopted, and that as a result sales increase by $20,000. What would be the new segment margin for Store B? Question Eight Utilization of Constrained Resources – WuHan Paint Company WuHan Paint Company makes three products in a single facility. These products have the following unit product costs: Products A B C Direct materials ¥22.50 ¥22.40 ¥29.20 Direct labor 13.60 11.40 12.50 Variable manufacturing overhead 3.00 3.40 4.50 Fixed manufacturing overhead 19.20 20.10 26.50 Unit product cost ¥58.30 ¥57.30 ¥72.70 Additional data concerning these products are listed below. Products A B C Mixing minutes per unit 3.30 1.70 1.80 Selling price per unit ¥74.70 ¥76.10 ¥87.50 Variable selling cost per unit ¥1.80 ¥2.40 ¥2.90 Monthly demand in units 4,000 2,000 4,000 The mixing machines are potentially the constraint in the production facility. A total of 23,200 minutes is available per month on these machines. Direct labor is a variable cost in this company. Required: How many minutes of mixing machine time would be required to satisfy demand for all three products? How much of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.) Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? off to the nearest whole RMB.) Question Nine (optional – for extra credit)
2017%20February%20EMBA%205303%20Final%20Exam.docx