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omework Required information The following information applies to the questions displayed below) Each of the following situations is independent Short-Term Product-Mix Decision DVD Production Company

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omework Required information The following information applies to the questions displayed below) Each of the following situations is independent Short-Term Product-Mix Decision DVD Production Company produces two basic types of video games, Flash and Clash. Pertinent data for DVD Production Company follow Sales price Direet naterials Direct labor te $25/hr.) variable factory overbead rixed factory ovezhead 30 50 s0 20 100 Karketing coats (all fixed) operating protie Based on direct labor hours: 4 direct labor hours (DLHs) per unit of Flash and 2 DLHs per unit of Clash The DVD game craze is at its height so that either Flash or Clash alone can be sold to keep the pliant operating at full capacity $ 70 However, labor capacity in the plant is insufficient to meet the combined demand for both games, Flash and Clash are processed through the same production departments Required: 2a. Calculate the contribution margin per labor hour for both Flash and Clash. (Round your answers to 2 decimal 2b. Which of the two products should be produced? Fiash Clash

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