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K Hernandez Inc. makes hats and bats. Each hat has a $14 contribution margin per unit and each bat has a $28 contribution margin per
K Hernandez Inc. makes hats and bats. Each hat has a $14 contribution margin per unit and each bat has a $28 contribution margin per unit. Quality control operations are limited and is the only constraining, scarce resource. Quality control operations are available for 2,000 hours per month. The hats use 15 minutes of the Quality Control resource and the bats use 20 minutes. For each product, calculate the contribution margin per hour of scarce resource and show work a. Contribution per unit of scarce resource for hats (5 points) b. Contribution per unit of scarce resource for bats (5 points)
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