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		1.25				7.50
Variable selling and administrative cost		0.75				0.50
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:

1. 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.

2. Which of Duo Companys products is most profitable?

Complete this question by entering your answers in the tabs below. Required 1 Required 2 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. Uno Dos Complete this question by entering your answers in the tabs below. Required 1 Required 2 Which of Duo Company's products is most profitable? Which of Duo Company's products is most profitable