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Kingbird Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Product Selling price Variable costs Machine hours Basic $44.00 $21.00 0.50
Kingbird Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Product Selling price Variable costs Machine hours Basic $44.00 $21.00 0.50 Deluxe $56.00 $28.70 0.70 Calculate the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour $ $ If 1,900 additional machine hours are available, which product should Kingbird manufacture? Kingbird should manufacture the product. Prepare an analysis showing the total contribution margin if 1,900 additional hours are: (1) Divided equally between the products. Basic Deluxe Total contribution margin (2) Allocated entirely to the product identified in part (b). Total contribution margin $
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