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Management Accounting - Assignment 1 A) LP Antique piece of furniture Q1. Optimum desegregate of chairs to maximize function margin. increment: 35 x Applewood +50 x Bentwood shade: office vulgar profit for Applewood $35 = $ cx - $85 parcel mete for Bentwood $50 = $110 - $70 Constraints: 1) automobile Hour: 2 x Applewood + 3 x Bentwood <= 1,200 2) assemblage Labour: 3 x Applewood + 2 x Bentwood <= 1,400 3) existent: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 model and one hundred sixty Bentwood model as per Iso Profit. The contribution margin pass on be $20,600. Q2. a) Optimum unifyes if Machine bit change magnitude to 1500. b) upper limit 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) brisk 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) supreme amou nt to be paid for increase in capacity. ! * The upper limit 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 crusade 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 go away a full essay, order it on our website: BestEssayCheap.com

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