Question #5

VG Systems2yo,oo 240,000 5. Reynolds, Inc. manufactures and sells two products. Relevant per unit data concerning each product are given below: Standard Dluxe $75 $33 $50 $26 Selling price Variable costs Machine hours (a) Compute the contribution margin per machine hour for each product. Standard (b) If 1,000 additional machine hours are available, which product should be manufactured? Deluxe The CVP income statement classifies costs 16. a as variable or fixed and computes contribution margin. b. by function and computes a contribution margin. c. as variable or fixed and computes gross margin. d. by function and computes a gross margin