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QUESTION 4 Duo Company manufactures two products, Uno and Dos, Contribution margin data follow. Unit sales Less: variable cost Direct material Uno Dos $13.00
QUESTION 4 Duo Company manufactures two products, Uno and Dos, Contribution margin data follow. Unit sales Less: variable cost Direct material Uno Dos $13.00 $31.00 Direct labor Variable overhead Variable selling and administration cost Total variable cost Unit contribution margin $7.00 $5.00 1.00 6.00 1.25 7.50 .75 .50 $10.00 $19.00 $3.00 $12.00 Duo company's production process uses highly skilled labor, which is in short supply. The same employees work on both products and earn the same wage rate. Required: Which of Duo Company's products is more profitable? Explain.
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