Dalton Company manufactures and sells two products. Relevant per-unit data concerning each product follow:

		Product
		Basic			Deluxe
Selling price		$ 40.00			$ 52.00
Variable costs		$ 18.00			$ 27.50
Machine hours		0.50			0.70

Calculate the contribution margin per machine hour for each product.

		Basic	Deluxe
Contribution margin per machine hour		$ enter a dollar amount	$ enter a dollar amount

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If 1,000 additional machine hours are available, which product should Dalton manufacture?

Dalton should manufacture the

select a product BasicDeluxe

product.

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Prepare an analysis showing the total contribution margin if 1,000 additional hours are: (1) Divided equally between the products.

Basic		$ enter a dollar amount
Deluxe		enter a dollar amount
Total contribution margin		$ enter a total amount

(2) Allocated entirely to the product identified in part (b).

Total contribution margin

$ enter the Total contribution margin