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Novak Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Product Basic Deluxe Selling price $42.00 $56.00 Variable costs $19.00

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Novak Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Product Basic Deluxe Selling price $42.00 $56.00 Variable costs $19.00 $26.60 Machine hours 0.50 0.70 Calculate the contribution margin per machine hour for each product. Contribution margin per machine ho If 1,440 additional machine hours are available, which product should Novak manufacture? Novak should manufacture the Prepare an analysis showing the total contribution margin if 1,440 additional hours are: (1) Divided equally between the products. Basic Deluxe Total contribution margin SA A (2) Allocated entirely to the product identified in part (b). Total contribution margin $

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