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Hanna Company

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Hanna Company has to evaluate two products (A&B). The following data pertains to these products.
Product A Product B
Selling price per unit $60 $80
Variable cost per unit $40 $50
Total fixed costs 20000 30000

Find the quantities to be sold from each product to make you indifferent to choose
Product A or Product B

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Find the quantities to be sold from each product to make you indifferent to choose
Hanna Company has to evaluate two products (A&B). The ...

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This solution is comprised of a detailed explanation to find the quantities to be sold from each product to make you indifferent to choose Product A or Product B.

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Managerial accounting

18.
Under a relevant range of production, the production has

a. minimum quantities that cannot exceed

b. maximum quantities that cannot exceed

c. minimum and maximum quantities that cannot exceed

d. no minimum or maximum quantities

24.
Hanna Company has the following data

Year Operating profit Sales
1 50,000 1,000,000
2 100,000 1,200,000

The contribution margin ratio is

a. 25%

b. 35%

c. 50%

d. 75%

25.
Hanna Company has the following data

Year Operating profit Sales
1 50,000 1,000,000
2 100,000 1,200,000

The total fixed cost is

a. $100,000.00

b. $120,000.00

c. $180,000.00

d. $200,000.00

26.
Hanna Company has the following data

Year Operating profit Sales
1 50,000 1,000,000
2 100,000 1,200,000

The variable cost percentage of sales is

a. 25%

b. 35%

c. 50%

d. 75%

27.
The incremental costs are

a. only fixed costs

b. only variable costs

c. could be variable or fixed costs

d. non avoidable costs

28.
Tany Company operates a manufacturing facilities. The following information pertains to its normal production: Maximum manufacturing capacity per month is 20,000 units. Total variable costs for maximum capacity are $160,000. Total fixed costs per month are $400,000. Tany received an offer from a suppliers of 4,000 units. Determine the price that makes Tany indifferent to reject or not this offer

a. $28

b. $20

c. $12

d. $8

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