Tamarisk company manufactures two styles of mops, standard and premium the following information is available 

                                                             std             prem 

selling price per unit                       $16              $12 

variable cost per unit                      $7                 $8 

labor hours required                        3                    2 

total fixed costs                                       $14,000 

tamarisk can sell a maximum of 4,780 units of each style of mop labor hour capacity for the year is 20,000 hours.

 

Which style has the highest contribution margin per unit? The v has the highest contribution margin per unit. Premium mop Standard mop