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Management Accounting - Assignment 1 A) LP Antique piece of furniture Q1. Optimum desegregate of chairs to maximize division margin. increment: 35 x Applewood +50 x Bentwood shade: office tax income profit for Applewood $35 = $ cx - $85 parcel bank for Bentwood $50 = $110 - $70 Constraints: 1) auto Hour: 2 x Applewood + 3 x Bentwood <= 1,200 2) assembly Labour: 3 x Applewood + 2 x Bentwood <= 1,400 3) visible: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 set and 160 Bentwood model as per Iso Profit. The contribution margin pass on be $20,600. Q2. a) Optimum unifyes if Machine bit increase to 1500. b) utmost 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) subsisting 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) level best amount to be paid for increase in capacity. * The level best 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 labour party 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 buy off a full essay, order it on our website: BestEssayCheap.com

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