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 uses half of the hours available to produce Product A and half of the hours available to produce Product B.What is Dakon's total contribution margin?
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Financial & Managerial Accounting
Authors: Jan Williams
16th Edition
78111048, 978-0078111044
