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Ensign Company produces two products and selected data are shown below: Products 1 2 Selling price per unit $60 $50 Less variable expenses per unit
Ensign Company produces two products and selected data are shown below: Products 1 2 Selling price per unit $60 $50 Less variable expenses per unit 36 35 Contribution margin per unit $24 $15 Current demand per week (units) 2,000 2,200 Contribution margin ratio 40% 30% Processing time required on machine A1 per unit 3.00 min 1.50 min Machine A1 is used at 100% capacity. The machine has capacity of 2,000 minutes. What is the contribution margin per unit of the constrained resource for Product 2? $30 $10 $5 $15
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