11.

2. Dalton Company manufactures and sells two products. Relevant per-unit data concerning each product follow:

		Product
		Basic		Deluxe
Selling price		$43.00			$54.00
Variable costs		$21.00			$29.50
Machine hours		0.50			0.70

Calculate the contribution margin per machine hour for each product.

		Basic	Deluxe
Contribution margin per machine hour		$enter a dollar amount	$enter a dollar amount

If 1,840 additional machine hours are available, which product should Dalton manufacture?

Dalton should manufacture the

select a product DeluxeBasic

product.

Prepare an analysis showing the total contribution margin if 1,840additional hours are: ( 1) Divided equally between the products.

Basic		$enter a dollar amount
Deluxe		enter a dollar amount
Total contribution margin		$enter a total amount

(2) Allocated entirely to the product identified in part (b).

Total contribution margin

$enter the Total contribution margin