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Surf Company can sell all of the two surfboard models it produces, but it has only 400 direct labor hours available. The Glide model requires
Surf Company can sell all of the two surfboard models it produces, but it has only 400 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 $200 for Glide and $300 for Ultra. Direct labor hours available Glide model - Direct labor hours per unit Ultra model - Direct labor hours per unit 400 2 4 Glide model - Contribution margin per unit $200 Ultra model - Contribution margin per unit $300 1 2 3 Required: 5 (a) Compute the contribution margin per direct labor hour for each product. 5(Use cells A2 to E10 from the given information to complete this question.) 7 B Glide Ultra Contribution margin per direct labor hour D (b) Determine the best sales mix and the resulting contribution margin. 2 B (Use cells A2 to E10 from the given information to complete this question.) 5 5 Number of units at best sales mix Contribution margin Glide Ultra
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