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Spencer Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Products A B C Selling price $19 $12
Spencer Company manufactures and sells three products. Relevant per unit data concerning each product are given below.
Products | |||
A | B | C | |
Selling price | $19 | $12 | $20 |
Variable costs and expenses | $5 | $10 | $18 |
Machine hours to produce | 2 | 1 | 2 |
(1) Compute the contribution margin per unit of the limited resource (machine hours) for each product.(Round contribution margin per unit to 2 decimal places, e.g. 1.25.)
(2) Assuming 1,710 additional machine hours are available, which product should be manufactured?
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