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Surf Company can sell all of the two surfboard models it produces, but it has only 420 direct labor hours available. The Glide model
Surf Company can sell all of the two surfboard models it produces, but it has only 420 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $220 for Glide and $340 for Ultra. (a) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Required A Required B Compute the contribution margin per direct labor hour for each product. Glide Ultra Contribution margin per direct labor hour < Required A Required B > Surf Company can sell all of the two surfboard models it produces, but it has only 420 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $220 for Glide and $340 for Ultra. (a) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Required A Required B Determine the best sales mix and the resulting contribution margin. Number of units Contribution margin Glide Ultra < Required A Required B
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