Question
Mars Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A B C Selling price $9 $14
Mars Company manufactures and sells three products. Relevant per unit data concerning each product are given below.
Product | ||||||
---|---|---|---|---|---|---|
A | B | C | ||||
Selling price | $9 | $14 | $18 | |||
Variable costs and expenses | $6 | $12 | $15 | |||
Machine hours to produce | 2 | 1 | 2 |
Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.50.)
Product A | Product B | Product C | ||||
---|---|---|---|---|---|---|
Contribution margin per unit of limited resource | $Enter a dollar amount | $Enter a dollar amount | $Enter a dollar amount |
eTextbook and Media
Assuming 3,000 additional machine hours are available, which product should be manufactured? Select an option Product BProduct AProduct C
eTextbook and Media
What is the total contribution margin if the additional hours are (1) divided equally among the products, and (2) if they are allocated entirely to the product identified above.
Total contribution margin | |||
---|---|---|---|
(1) | Divided equally amoung the products | $Enter a dollar amount | |
(2) | Allocated entirely to the product identified above | $Enter a dollar amount |
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