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Pharoah Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $ 43.0 $ 52.0 Variable
Pharoah Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $ 43.0 $ 52.0 Variable costs $ 23.0 $ 24.8 Machine hours 0.5 0.8 (a) Your answer is correct. Compute the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour $ 40 $ 34 e Textbook and Media Attempts: 2 of 3 used (b) Your answer is correct. If 1,090 additional machine hours are available, which product should Helena manufacture? Basic e Textbook and Media Attempts: 1 of 3 used (c) Your answer is partially correct. Calculate total contribution margin if the additional 1,090 hours are: (1) Divided equally between the products. Basic Deluxe Total Contribution margin $ $ $ (2) Allocated entirely to the product identified above. Basic Deluxe Total Contribution margin $ $ 0 $
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