Question
Pasadena Corporation produces three products, and currently has a shortage of machine hours since one of its two machines is down, only 390 hours
Pasadena Corporation produces three products, and currently has a shortage of machine hours since one of its two machines is down, only 390 hours are available this month. The selling prices, costs, and labor requirements of the three products are as follows: Sales price Variable cost per unit Machine hours per unit Required: Product A $ 6.25 $ 5.50 0.25 Product B. $11.50 $ 4.00 1.50 Product C $ 7.50 $ 6.00 0.50 a. What is the contribution margin per unit for each product? b. What is the contribution margin per machine hour for each product? c. Assume Pasadena has unlimited demand for each product. Which product should Pasadena focus on producing? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the contribution margin per unit for each product? Note: Round your answers to 2 decimal places. Contribution Margin per Unit
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