Tanek Industries manufactures and sells three different models of wet-dry shop v

Question

Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently operating at full capacity with limited machine time.

Sales and production information relevant to each model follows.

Product Economy Standard Deluxe Selling price $43 $71 $142 Variable costs and expenses $17 $26 $60 Machine hours required 0.5 0.8 1.5 Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently operating at full capacity with limited machine time.

Sales and production information relevant to each model follows.

Product Economy Standard Deluxe Selling price $43 $71 $142 Variable costs and expenses $17 $26 $60 Machine hours required 0.5 0.8 1.5 Product Economy Standard Deluxe Product Economy Standard Deluxe I need to answer part a first to get to part b then c then part d. I will increase the points to get to answer d. Thanks Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently operating at full capacity with limited machine time.

Sales and production information relevant to each model follows.

Product Economy Standard Deluxe Selling price $43 $71 $142 Variable costs and expenses $17 $26 $60 Machine hours required 0.5 0.8 1.5 Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently operating at full capacity with limited machine time. Sales and production information relevant to each model follows. Calculate contribution margin per unit.

Explanation / Answer

Product

Economy

Standard

Deluxe

Selling price

$43

$71

$142

Less:Variable costs and expenses

$17

$26

$60

a)Contribution per unit

$26

$45

$82

b)Machine hrs

0.5

0.8

1.5

Contribution per unit of resource(a/b)

$52

$56.25

$54.67

Product

Economy

Standard

Deluxe

Selling price

$43

$71

$142

Less:Variable costs and expenses

$17

$26

$60

a)Contribution per unit

$26

$45

$82

b)Machine hrs

0.5

0.8

1.5

Contribution per unit of resource(a/b)

$52

$56.25

$54.67

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