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Blue Spruce Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting
Blue Spruce Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products: Normal High Superior Selling price per unit $30.00 $46.00 $57.00 Variable costs per unit $25.02 $40.00 $54.00 Contribution margin per unit $4.98 $6.00 $3.00 Machine hours required 0.02 0.04 0.08 Determine the contribution margin per machine hour. (Round answers to 2 decimal places, e.g. 15.25.) Contribution Margin Normal High Superior per machine hour per machine hour $ per machine hour If the limited resource can be increased by 480 hours, calculate the maximum increase in contribution margin. Assume that Blue Spruce can sell all products manufactured. Increase in contribution margin
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