Help! Second time asking this Seling price arable s and expenses Machine hours t

Question

Help! Second time asking this Seling price arable s and expenses Machine hours to produce $7 $14 $18 $5 $12 $15 tudy Your answer is partially rect-hy again. Compute the continibution margin per unit of lmited resouroe (machine houn) for each product.(Round contribution margin per unit to 2 declmal places, o.g. 1.25.) Product A Product Product c Contribution margin per unit of limited resource Your answer is correct Assuming 3,000 additional machine hours are available, which product should be manufactured? roct t Your answer is incorect. Try again. What is the total contribution margin if the hours are (1) divided equally amoung the products and (2) they are allocated entirely bo the preduct identifed above Total contribution margin (1) Divided equally amoung the products (2) Allocated entirely to the product identified above

Explanation / Answer

Contribution margin per unit :

Product B

1) Divided equally = (1000*1+1000*2+1000*1.50) = 4500

2) Allocated entirely to the product identified above = 3000*2 = 6000

Product A Product B Product C Sale price per unit 7 14 18 Variable cost per unit 5 12 15 Contribution margin per unit 2 2 3 Machine hour per unit 2 1 2 Contribution margin per hour 1 2 1.50

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