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Cullumber Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features,
Cullumber Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Cullumber is currently operating at full capacity with limited machine time. Per unit sales and production information relevant to each model follows. Product Economy Standard Deluxe Selling price $44 $73 $146 Variable costs and expenses $23 $29 $68 Machine hours required 0.50 0.80 1.60 (a1) Calculate unit contribution margin. Product Standard Deluxe Economy Unit contribution margin $ Ignoring the machine time constraint, which single product should Tanek Industries produce? eTextbook and Media Question Part Score --/0.75 What is the contribution margin per unit of limited resource for each product? (Round answers to 2 decimal places, e.g. 10.50.) Economy Standard Contribution margin per limited resource $ eTextbook and Media Question Part Score If additional machine time could be obtained, how should the additional time be used? The additional time should be used to produce the product. --/0.75
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