Question
Jo makes 2 products, A and B. Both products require labour hours for assembly. Total labour hours are limted to 5,000 hours a month. Based
Jo makes 2 products, A and B. Both products require labour hours for assembly. Total labour hours are limted to 5,000 hours a month. Based on the following per unit data which product maximizes the contribution margin per labour hour, and what is its contribution margin per labour hour?
Product A has a selling price = $10, a variable cost = $6, and requires 0.5 labour hours to assemble
Product B has a selling price = $12, a variable cost = $7, and requires 2 labour hours to assemble
a Product A : $4
b Product B : $5
c Product A : $8
d Product B : $10
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