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Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Uno $13.00 Dos $31.00 Unit sales Less variable cost: Direct material Direct labor
Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Uno $13.00 Dos $31.00 Unit sales Less variable cost: Direct material Direct labor Variable overhead Variable selling and administrative cost Total variable cost Unit contribution margin $ 7.00 1.00 1.25 0.75 $10.00 $ 3.00 $ 5.00 6.00 7.50 0.50 $19.00 $12.00 Duo company's 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 Company's products is most profitable? 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? The following data pertain to Royal Lighting Company's oak-clad, contemporary chandelier. $300 130 Variable manufacturing cost Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and administrative cost Required: For each of the following cost bases, develop a cost-plus pricing formula that will result in a price of $645 for the oak chandelier. (Round your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) Cost-Plus Pricing Formula + ar 1. Variable manufacturing cost 2. Absorption manufacturing cost 3. Total cost 4. Total variable cost $ 645 = $ 645 = $ 645 = 1 $ 645 = + Spectrum Sound, Inc. manufactures compact disc players with unusual features in its St. Louis Division. The divisional sales manager has estimated the following demand-curve data. Quantity Sold per Month Unit Sales Price $1,000 950 900 850 800 100 Required: 1. Calculate the Spectrum Sound's total revenue per month and the changes in the total revenue. Quantity Sold per Month Unit Sales Price $ 1,000 950 Total Changes Revenue in Total per Month Revenue 40 | 60 900 8501 100 800
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