Domino Co.
Not what you're looking for?
Use the following information to answer questions 1 through 3.
Domino Co. manufactures three sizes of dog carriers: small, medium, and large. Potential sales include 100 units of small, 120 units of medium, and 100 units of large per month. The barrier in reaching the sales level revolves around the maximum machine hours available, 600 per month. Product information is provided below.
Unit Small Medium Large
Selling price $30 $50 $100
Costs
Variable 18 30 46
Fixed 8 10 24
Machine Hours per Unit 2 4 10
1. What is the contribution margin per machine-hour for small units?
a. $10.00.
b. $ 6.00.
c. $ 5.40.
d. $ 3.60
e. none of the above
2. If management incorporates a short-run profit maximizing strategy, which of the three product models should be produced first?
a. Small.
b. Medium.
c. Large.
d. Either medium or large.
3. Using the short-run strategy, how many of each product should be produced per month?
Small Medium Large
a. 0 120 12
b. 100 0 40
c. 100 100 0
d. 100 20 40
e. none of the above
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer
1. What is the contribution margin per machine-hour for small units?
2. If management incorporates a short-run profit maximizing strategy, which of the three product models should be produced first?
3. Using the short-run strategy, how many of each product should be produced per month?
Solution Preview
Use the following information to answer questions 1 through 3.
Domino Co. manufactures three sizes of dog carriers: small, medium, and large. Potential sales include 100 units of small, 120 units of medium, and 100 units of large per month. The barrier in reaching the sales level revolves around the maximum machine hours available, 600 per month. Product information is provided ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Operations Management
This quiz tests a student's knowledge about Operations Management
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce