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Short - Term Product - Mix Decision DVD Productlon Company produces two baslc types of video games, Flash and Clash. Pertinent data for DVD Production
ShortTerm ProductMix Decision DVD Productlon Company produces two baslc types of video games, Flash and Clash. Pertinent
data for DVD Production Company follow:
"Based on direct labor hours: direct labor hours DLHs per unit of Flash and DLHs per unlt of Clash.
The DVD game craze is at its height so that elther Flash or Clash alone can be sold to keep the plant operating at full capacity.
However, labor capacity In the plant is Insufficlent to meet the combined demand for both games. Flash and Clash are processed
through the same production departments.
Required:
a Calculate the contribution margin per labor hour for both Flash and Clash. Round your answers to declmal places.
b Which of the two products should be produced?
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