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Product A requires 2 machine hours per unit, has a unit contribution margin of $15, and a contribution margin ratio of 60%. Product B requires
Product A requires 2 machine hours per unit, has a unit contribution margin of $15, and a contribution margin ratio of 60%. Product B requires 1 machine hour per unit, has a unit contribution margin of $12, and a contribution margin ratio of 40%. Which product should be emphasized if machine hours are limited? To answer this question, first compute the contribution margin per machine hour for each product. Note: Enter answers to two decimal places, when appropriate. costs will each increase by $2 per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current level of $160,000 to $225,000. Prepare an analysis showing whether Jensen should process the assemblies further. Use a negative sign with answer to only indicate a loss from processing assemblies further; otherwise do not use negative signs with your answers. Overhead costs are 80% variable, and the remaining 20% is an allocation of the general manager's salary. (The general manager is over multiple product lines.) If the Oceania Model is dropped, what will be the most likely impact on gross margin for the firm in the next year? Note: Use a negative sign with your answer to indicate a decrease in gross profit, if applicable. \begin{tabular}{|l|r|r|} \hline Units produced per batch & Product X & Product Y \\ \hline Further processing and marketing cost per unit & 10,000 & 20,000 \\ \hline Final sales value per unit & $2.50 & $1.75 \\ \hline \end{tabular} If Wright uses the net realizable value method of allocating joint costs, how much of the joint costs should be allocated to Product Y
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