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Assume a company makes only three products, A, B, and C Product A Product D Product C Selling price per unit $ 80 $ 35
Assume a company makes only three products, A, B, and C Product A Product D Product C Selling price per unit $ 80 $ 35 2.5 $ 65 $ 25 3 $ 45 $ 20 115 Variable cost per unit Machine-hours per unit The company does not have enough machine-hours available to satisfy demand for all of its products. The depreciation experise on its machines averages $7.00 per machine-hour. What is Product A's contribution margin per unit of the constraining resource? Multiple Choice $27.50 $18.00 $112.50 $0.50
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