Exercise 20-11 (Part Level Submission) Mars Company manufactures and sells three

Question

Exercise 20-11 (Part Level Submission) Mars Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Selling price Variable costs and expenses Machine hours to produce A $8 $5 2 Product B $12 $10 1 ? $18 $15 2 ? (a) > (b) (c) What is the total contribution margin if the hours are (1) divided equally amoung the products and (2) if they are allocated entirely to the product identified above. Total contribution margin (1) Divided equally amoung the products (2) Allocated entirely to the product identified above LINK TO TEXT

Explanation / Answer

Answer:-

Mars Company Contribution Margin Statement Products A B C $ $ $ Selling Price per Unit 8 12 18 Less:- Variable cost per unit 5 10 15 Contribution per unit (a) 3 2 3 Machine hour per unit (b) 2 1 2 Contribution margin per machine hour c=a/b 1.5 2 1.5 Ranking II I II

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