Question
Razerian makes production for audio. A total of 500 hours in January 2021 is available per month in this operation beause they face COVID 19,
Razerian makes production for audio. A total of 500 hours in January 2021 is available per month in this operation beause they face COVID 19, so they must decrease their productive hours. Data concerning the companys four products appear below:
headphone | earbuds | speaker bluetooth | home theather | |
Monthlys demand in units | 80 | 120 | 100 | 140 |
Hours required in operation per unit | 0,6 | 1,8 | 0,4 | 2,5 |
unit contributiion margin | $12 | $36 | $8 | $50 |
variable expenses | headphone : $8 | earbuds : $20 | speaker bluetootfh : $5 | home theater : $30 |
No fixed costs could be avoided by modifying how many units are produced of any product or even by dropping any one of the products.
*(calculations required to use formulas)
-Within this month, calculate the contribution margin and what should Razerian do if they want to get optimum margin?
-Suppose that youre Razerians Business Director, what should you take place to get the optimum sales revenue?
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