ABC Inc.produces two basic types of video games, Bob and John. Pertinent data follow (DLH = direct labor hour):

	Bob	John
Sales Price (per unit)	$240	$168
Costs (per unit):
Direct Materials	$67	$31
Direct Labour	$36	$60
Variable Factory Overhead (@ $15 per DLH)	$60	$30
Allocated Fixed Factory Overhead (based on DLH's)	$24	$12
Marketing Expenses (all variable)	$35	$24
Total Costs:	$222	$157
Operating Income(per unit):	$18	$11

There is insufficient labor capacity in the plant to meet the combined demand for both Bob and John. Both products are produced through the same production departments.

In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?:

	John, $23.00
	Bob, $18.00
	John, $11.50
	John, $11.00
	Bob, $10.50