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Dashboard / My courses / BUAD-264-001/002-12354.LULU Question 12 Not yet answered Maried out of 6.00 Pflag 4N Inc. produces four different types of surgical masks
Dashboard / My courses / BUAD-264-001/002-12354.LULU Question 12 Not yet answered Maried out of 6.00 Pflag 4N Inc. produces four different types of surgical masks that it sells to hospitals. The masks are sold in boxes (500 masks per box). Information on each type of medical mask is shown below and is per box of surgical masks: Type 1 Type 2 Type 3 Type 4 Selling price per unit $ 119 $ 101 $ 86 $ 77 Variable costs per unit Direct materials 45382922 Direct labour 20 16 12 10 Variable manufacturing overhead Total variable cost per unit $ 77 $ 50 $ The company is experiencing shortages of skilled labour time Weeded for production of all types of masks. Presently, only 4,000 hours of skilled labour time are available each week and the cost per director Mouris Given the COVID-19 pandemic, all masks types have an unlimited customer demand. Required a) Calculate the contribution margin per direct labour-hour for eachype of mask per box), (4 marks) b) Indicate which product the Company should prioritize for production and explain why. (2 marks) CYDD
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