Question
The Dakon Company manufactures two products: A and B.Information about the products is as follows: Product AProduct B Revenue perunit$150$125 Variable costs perunit8070 Contribution margin
The Dakon Company manufactures two products: A and B.Information about the products is as follows:
Product AProduct B
Revenue perunit$150$125
Variable costs perunit8070
Contribution margin perunit$ 70$55
Totaldemand15,000units12,000 units
Machine hours perunit.5 MH .25 MH
There are 5,000 machine hours available during the quarter.
Q: Assume that Dakon Company produces the product mix that will maximize profit.What is Dakon's total contribution margin?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
