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Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Dos Uno $14.00 $37.00 Unit sales Less variable cost: Direct material Direct labor
Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Dos Uno $14.00 $37.00 Unit sales Less variable cost: Direct material Direct labor Variable overhead Variable selling and administrative cost Total variable cost Unit contribution margin $ 6.00 7.00 9.20 $ 8.00 1.00 1.50 .50 $11.00 $ 3.00 .80 $23.00 $14.00 Duo company's production process uses highly skilled labor, which is in short supply. The same employees work on both produ 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 dir laborers earn $1.00 per unit. 2. Which of Duo Company's 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
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