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Assume a company makes only three products, A, B, and C: Selling price per unit Variable cost per unit Machine-hours per unit Product A $
Assume a company makes only three products, A, B, and C: Selling price per unit Variable cost per unit Machine-hours per unit Product A $ 75 $ 35 2.75 Product B $65 $ 25 3 Product c $ 45 $ 20 1.5 The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource closest to: Multiple Choice O $14.55 $40.00. $110.00 $41.00 Assume that a company makes three productsProduct A, Product B, and Product C-and provides the following information with respect to those products: Product Product B Product C A $ 70 $ 75 24 29 Selling price Variable costa per unit: Direct materials Direct labor Variable overhead Total variable cont per unit Contribution margin per unit Machine-hours per unit 16 40 2 58 $ 12 | l:|:|:| 2 54 $ 21 $ 1.0 3.0 The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. The company has only 3,600 machine-hours available for production. Assuming the company has made optimal use of its 3,600 machine- hours, what is the maximum amount per hour the company should be willing to pay to rent additional machine hours of capacity? Multiple Choice $7.00 $7.50 $12.00 S21.00
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