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Consider the following production and cost data for two product, L and C: The co

ID: 2501310 • Letter: C

Question

Consider the following production and cost data for two product, L and C: The company can only perform 9,000 machine set-ups each period due to limited skilled labor and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? The WRT Corporation makes collections on sales according to the following schedule: The following sales have been are expected: Budgeted cash collections in June should be budgeted to be: Brown Corporation has sales of 2.080 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expenses art $68,000, the degree of operating leverage is:

Explanation / Answer

35. The largest possible total contribution margin would be $180,000

36. The budgeted cash collection would be $131,800

37. the degree of operating leverage is 7.8 that is ( 2080(50-(50*25%) / 2080(50-(50*25%)-68000)