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Dalton Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling Price $40 $52 Direct labor costs
Dalton Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling Price $40 $52 Direct labor costs $18 $24 Machine hours .5 .7 Compute the contribution margin per machine hour for each product. Basic $ Deluxe $ If 1,000 additional machine hours are available, which product should Dalton manufacture? Prepare an analysis showing the total contribution margin if the additional hours are: (1) Divided equally between the products. (2) Allocated entirely to the product identified in part (b). (If answer is zero, please enter 0, do not leave any fields blank.) Divided equally between the products Basic Deluxe Total Machine hours allocated Contribution margin per machine hour Contribution margin $ $ $ Allocated entirely to the product identified in the part above Basic Deluxe Total Machine hours allocated Contribution margin per machine hour Contribution margin $ $ $
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