Question
Glover Company makes three products in a single facility with the following information: A B C Selling Price per unit $85.00 $97.00 $91.00 Direct Materials
Glover Company makes three products in a single facility with the following information:
|
| A | B | C |
| Selling Price per unit | $85.00 | $97.00 | $91.00 |
| Direct Materials | 16.00 | 11.00 | 14.00 |
| Direct Labor | 19.00 | 17.00 | 20.00 |
| Variable Manufacturing | 3.0 | 2.5 | 4.0 |
| Fixed Manufacturing | 22.00 | 24.00 | 30.00 |
| Variable Selling Cost | 3.00 | 2.50 | 1.90 |
| Mixing Minutes / Unit | 4.0 | 2.5 | 3.0 |
| Monthly demand (units) | 1,500 | 2,000 | 500 |
**The company only has 10,500 minutes available per month to mix these products**
Calculate the contribution margin per unit
How much of each of these products should be produced to maximized net operating income, and what would the total contribution margin equal?
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The Principles And Practice Of Auditing
Authors: George Puttick, Sandra Van Esch
8th Edition
0702156914, 978-0702156915
