Division C also produces two product lines. Because the division can sell all of the product it can produce, Dillard is expanding the plant and needs to decide which product line to emphasize. To make this decision, the division accountant assembled the following data (data listed below)

After expansion, the factory will have a production capacity of 4,700 machine hours per month. The plant can manufacture either 40 units of K707s or 62 units of G582s per machine hour.

Requirements:

Identify the constraining factor for Division C.

Prepare an analysis to show which product line to emphasize. (Use excel format below to answer question)

after analyzing and interpreting the data, provide a summary of your recommendations for division C

Requirement 3(b) 1) Units produced per hour \begin{tabular}{|l|l} K707 & G582 \\ \hline \end{tabular} 2) Contribution margin per unit Contribution margin per machine hour [(1)(2)] \begin{tabular}{lrr} \hline & \multicolumn{2}{c}{ Per Unit } \\ \cline { 2 - 3 } & K707 & G582 \\ \hline Sales price & $84 & $50 \\ Variable costs & 24 & 21 \\ Contribution margin & $60 & $29 \\ Contribution margin ratio & 71.4% & 58.0% \\ \hline \end{tabular}