6. (Points: 1) Ship sells hangings for $30 a foot. Their value chain for this pr

Question

6. (Points: 1)
Ship sells hangings for $30 a foot. Their value chain for this product is three sequential activities of Cut, Paste & Ship. Given the costs below calculate the contribution margin and the Throughput for Cut, Paste & Ship. The contribution margin per unit and Throughput per unit is respectively:
Activity

Fixed cost

Direct materials

Direct Labor





Cut

$1,000

$8 per foot

$2 per foot





Paste

$500

0

$3 per foot





Ship

$2,000

0

$1 per foot









a. $20 & $16

b. $16 & $22

c. $22 & $16

d. $16 & $24

e. none of the answers above are correct.

Explanation / Answer

b. $16 & $22

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