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Compute contribution margin and determine the products to be manufactured. E6-12 Dalton Inc. produces and sells three products. Unit data concerning each product are shown
Compute contribution margin and determine the products to be manufactured. E6-12 Dalton Inc. produces and sells three products. Unit data concerning each product are shown below. LO 3), AN Product Selling price Direct labor costs Other variable costs $200 $300 $250 35 80 145 30 95 80 Exercises The company has 2,000 hours of labor available to build inventory in anticipation of the company's peak season. Management is trying to decide which product should be pro- duced. The direct labor hourly rate is $10. Instructions (a) Determine the number of direct labor hours per unit. (b) Determine the contribution margin per direct labor hour. (c) Determine which product should be produced and the total contribution margin for that product
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