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Surf Company can sell all of the two surfboard models it produces, but it has only 436 direct labor hours available. The Glide model
Surf Company can sell all of the two surfboard models it produces, but it has only 436 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 $236 for Glide and $372 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. Answer is complete but not entirely correct. 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 118 93 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 436 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 $236 for Glide and $372 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. Answer is complete but not entirely correct. 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. Glide Ultra Number of units 109 82 Contribution margin $ 118 ( 93 < Required A Required 0 >
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