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Ivanhoe Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $41.0 $54.0 Variable costs
Ivanhoe Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $41.0 $54.0 Variable costs $26.6 $23.4 Machine hours 0.4 0.9 (a) Your answer is correct. Compute the contribution margin per machine hour for each product. Contribution margin per machine hour eTextbook and Media Basic 36 Deluxe 34 Attempts: 2 of 7 used (c) - Your answer is partially correct. Calculate total contribution margin if the additional 1,090 hours are: (1) Divided equally between the products. Contribution margin $ Basic Deluxe 19620 $ (2) Allocated entirely to the product identified above. Contribution margin $ eTextbook and Media Basic 39,240 Deluxe 19075 $ 0 LA Total Total 38695 39,240
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