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Management Accounting - Assignment 1 A) LP Antique piece of furniture Q1. Optimum desegregate of chairs to maximize component part margin. increment: 35 x Applewood +50 x Bentwood shade: office uncouth profit for Applewood $35 = $ cx - $85 parcel marge for Bentwood $50 = $110 - $70 Constraints: 1) automobile Hour: 2 x Applewood + 3 x Bentwood <= 1,200 2) crowd Labour: 3 x Applewood + 2 x Bentwood <= 1,400 3) hooey:1 x Applewood + 0 x Bentwood <= 400 4) actual suppose:0 x Applewood + 1 x Bentwood => 50 Results: to maximize contribution margin the smart set has to produce 360 Applewood theoretical account and 160 Bentwood model as per Iso Profit. The contribution margin pass on be $20,600. Q2. a) Optimum unifyes if Machine bit increase to 1500. b) maximal tot up to be paid for increase in capacity. a) Optimum mix of chairs to maximize contribution margin with increased Machine hour.

Maximize: 35 x Applewood +50 x Bentwood Note: Contribution Margin for Applewood $35 = $110 - $85 Contribution Margin for Bentwood $50 = $110 - $70 Constraints: 1) Machine Hour: 2 x Applewood + 3 x Bentwood <= 1,500 2) Assembly Labour: 3 x Applewood + 2 x Bentwood <= 1,400 3) Material:1 x Applewood + 0 x Bentwood <= 400 4) be order:0 x Applewood + 1 x Bentwood => 50 Results: to maximize contribution margin the company has to produce 240 Applewood model (down from 360) and 340 Bentwood model (up from 160). The contribution margin will be $25,400. b) maximal amount to be paid fo r increase in capacity. * The maximal ! amount Antique Company would the likes of to pay for machine hour capacity increase is $4,800 ($25,400 - $20,600) by subtracting two contribution margins. Q3. optimal product mix without analogue programming (assuming no push back assembly hour constraints). retort: Maximize: 35 x Applewood +50 x Bentwood Note: Contribution Margin for Applewood $35 = $110 - $85 Contribution Margin for...If you want to make water a full essay, order it on our website: BestEssayCheap.com

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