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Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Uno Dos Unit sales $ 13.00 $ 31.00 Less variable cost: Direct material

Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Uno Dos Unit sales $ 13.00 $ 31.00 Less variable cost: Direct material $ 7.00 $ 5.00 Direct labor 1.00 6.00 Variable overhead 1.50 7.50 Variable selling and administrative cost .50 .50 Total variable cost $ 10.00 $ 19.00 Unit contribution margin $ 3.00 $ 12.00 Duo companys production process uses highly skilled labor, which is in short supply. The same employees work on both products and earn the same wage rate. Required: Calculate the contribution margin per scarce resource for each of the products assuming an arbitrary time period for which direct laborers earn $1.00 per unit. Which of Duo Companys products is most profitable

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