### smart company makes two models of its hair dryer the copper winding machine has been 3486749

Smart Company makes two models of its hair dryer. The copper-winding machine has been the constraint in the factory in the past. The capacity of this machine is 9,600 minutes per month. Data concerning these two products appear below:

Click here to have a similar A+ quality paper done for you by one of our writers within the set deadline at a discounted

Standard Premium Selling price 20 29 Variable cost 7 12 Machine time per unit (minutes) 0.73 0.88 Monthly demand (units) 17,569 11,713

Required:

1. Determine if the copper-winding machine is currently a constraint. In other words, does product demand exceed machine capacity? (LO1)

2. Determine the contribution margin per machine minute for each product. (LO1)

Click here to have a similar A+ quality paper done for you by one of our writers within the set deadline at a discounted

3. Assuming the copper-winding machine is a constraint, how many units of each product should be made to maximize net operating income? (LO1)

4. We can increase the quality of copper-winding machine in its premium product line rather considered it as constraint. If we use discretionary cost center method and add \$2 R&D variable cost, then what will be new segmented Income statement? (LO4)

5. What is the best pricing method company should use for copper-winding machine? Explain theoretical framework of pricing method in management accounting. (LO3)

6. The following data is given, if the company is going to install new copper-winding machine with the replacement of old machine and 15%. (LO6)

New Cooper-winding Old Cooper-winding

Click here to have a similar A+ quality paper done for you by one of our writers within the set deadline at a discounted

Annual revenues 131,769 102,487 Annual cash operating costs 43,923 36,603 Net annual cash inflows 87,846 65,885

If Company installed new machine then;

Cost 439,230 Productive life 10 years Salvage value 10,249 Replace parts at the end of 6 years 73,205 Salvage of old Cooper Winding. 58,564