Question
Relevant Costs for Short-Term Decisions Product Mix when Resources are Constrained George Company produces three skateboards, Android, Bio-Mutant and Cyclops. Cost and revenue data pertaining
Relevant Costs for Short-Term Decisions Product Mix when Resources are Constrained George Company produces three skateboards, Android, Bio-Mutant and Cyclops. Cost and revenue data pertaining to each product are as follows: Angel Wings Boemeth Cyclone Selling Price $ 180 $ 220 $ 260 Direct Labor ($20/hour) $ 40 S 80 $ 120 Direct Materials $ 44 $ 48 $ 40 Variable Overhead 60 $ 32 $ 28 At the present time, demand for each of the company's products far exceeds its capacity to produce them. Thus management is trying to determine which of its skateboards to concentrate on next week in filling its backlog of orders. George's direct labor rate is $20 per hour and 1,000 hours of direct labor are available next week. Which product should George make next week? (4 points) Please show your calculation of contribution margin per the constrained resource
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