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Abby Company sells catnip, specialized catnip and organic catnip.. The factory is experiencing a bottleneck in direct labor hours and is trying to determine which
Abby Company sells catnip, specialized catnip and organic catnip.. The factory is experiencing a bottleneck in direct labor hours and is trying to determine which item is more profitable. Catnip Specialized Organic Catnip Catnip Sales price $10.00 $22.50 $30.00 Variable cost per item $2.50 $6.00 $10.00 Direct Labor Hours needed 1 hour 2.5 hours 2 hours REQUIRED: (a) Calculate the contribution margin per hour per item. (b) Determine which items the company should try to sell more of first, second, and then last
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