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Please double check my work for this problem, thank you. Portable Enterprises produces two lines of mobile homes: double-wide and single-wide. Unit cost and revenue
Please double check my work for this problem, thank you.
Portable Enterprises produces two lines of mobile homes: double-wide and single-wide. Unit cost and revenue data pertaining to each product are shown below: Each double-wide home requires 350 different labor hours and 125 machine hours. Each single wide home requires 175 direct labor hours and 150 machine hours. Demand for each line of homes far exceeds the company's total production capacity. (a) If Portable's production capacity is constrained by limited direct labor hours which line of homes should it produce? _Single Wide (exist114.29 Contribution Margin per Labor Hr.)_ (b) If Portable's total production capacity is constrained by machine hours which line of homes should it produce? _Double Wide (exist166.67 Contribution Margin per Machine Hr.)_ Computations: DW exist70,000 - exist45,000 = exist25,000 Contribution Margin exist25,000/350DL hrs = exist71.43 Contribution Margin per Labor Hr. exist25,000/150M hrs = exist166.67 Contribution Margin per Machine Hr. SW exist40,000 - exist20,000 = exist20,000 Contribution Margin exist20,000/175DL hrs = exist114.29 Contribution Margin per Labor Hr. exist20,000/150M hrs = exist133.33 Contribution Margin per Machine HrStep by Step Solution
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