Assignment 25506

The following per-unit data are available.
Small
Vase  Large Vase

Sale price  $60  $100

Variable costs  $35  $60

Machine hours
required for 1 vase  1  2

Total fixed costs are $600,000, and Rose
Incorporated can sell a maximum of 25,000 units of each type of vase annually.
Machine hour capacity is 50,000 hours per year.

a. Determine the
contribution margin per unit for each type of vase.
b. Determine
the contribution margin per machine hour for each type of vase.
c. Determine
the number of units of each style of vase that Rose Incorporated should produce
to maximize operating income.
d. What
is the dollar amount of the maximum operating income as calculated in C above?

Please give detailed answers for each so I know how you came to each conclusion. Thank you 🙂