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A company has a limited number of machine-hours per month which are allocated to products A and B. The following information is available: Product A

A company has a limited number of machine-hours per month which are allocated to products A and B. The following information is available: Product A B Selling price 340 270 Direct material 100 90 Direct labour 65 50 Variable overhead 25 50 Fixed overhead 15 30 Machine-hours required 1.50 2.00 Which product should the company emphasise? Complete the table below. (Round contribution per machine-hour to two decimal places.)

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A company has a limited number of machine-hours per month which are allocated to products A and B. The following information is available: Product B 340 270 Selling price Direct material 100 90 Direct labour 65 50 Variable overhead 25 50 15 30 Fixed overhead Machine-hours required 1.50 2.00 Which product should the company emphasise? Complete the table below. (Round contribution per machine-hour to two decimal places.) Product A B Selling price Variable cost Contribution per unit Machine-hours required Contribution per machine-hour Based on your calculations, which product would you recommend that the company promote? Select an answer V

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