Question
jackson Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the
jackson Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products: Normal. High. Superior Selling price per unit. $35.00. $43.00 $56.00 Variable costs per unit. $29.79. $36.00 $52.00 Contribution margin per unit. $5.21. $7.00. $4.00 Machine hours required. 0.02. 0.04. 0.08
a). Determine the contribution margin per machine hour. (Round answers to 2 decimal places, e.g. 15.25.) Contribution Margin Normal $_________ per machine hour High $__________ per machine hour Superior $___________ per machine hour
b). If the limited resource can be increased by 680 hours, calculate the maximum increase in contribution margin. Assume that Ivanhoe can sell all products manufactured.
Increase in contribution margin $_________
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