Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 19 Aug 2017 My Price 7.00

Gunst Company

Gunst Company produces three video games: Android, Bio-Mutant, and Cyclops. Cost and rev- enue data pertaining to each product are as follows:

 

 

 

 

Android

Bio-Mutant

Cyclops

Selling price  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$100

$60

$125

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48

24

60

Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

8

16

Variable overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

4

9

 

 

LO4

 

 

 

 

 

 

 

At the present time, demand for each of the company’s products far exceeds its capacity to produce them. Thus, management is trying to determine which of its games to concentrate on next week in filling its backlog of orders. Gunst’s direct labor rate is $12 per hour, and only 1,000 hours of direct labor are available each week. Determine the maximum total contribution margin the company can make by its best use of the 1,000 available hours.

Answers

(5)
Status NEW Posted 19 Aug 2017 06:08 PM My Price 7.00

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