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Wright, Inc. produces three products. Data concerning the selling prices and unit costs of the three products appear below: Selling price Variable costs Fixed costs
Wright, Inc. produces three products. Data concerning the selling prices and unit costs of the three products appear below: Selling price Variable costs Fixed costs Tapping machine time (minutes) Product C D E $65 $75 $45 $40 $45 $30 25 22 6 10 3 2 Fixed costs are applied to the products on the basis of direct labor hours. Demand for the three products exceeds the company's productive capacity. The tapping machine is the constraint, with only 2,600 minutes of tapping machine time available this week. Required: a-1.Calculate the contribution margin per minute for all three products. (Round your answers to 2 decimal places.) E Contribution margin per minute Given the tapping machine constraint, which product should be emphasized? 2. MacBook 80 F DOO F4 A * $ 4 % 5 2 3 & 7 6 8 9 25 22 6 Fixed costs Tapping machine time (minutes) 10 3 2 Fixed costs are applied to the products on the basis of direct labor hours. Demand for the three products exceeds the company's productive capacity. The tapping machine is the constraint, with only 2,600 minutes of tapping machine time available this week. Required: a-1.Calculate the contribution margin per minute for all three products. (Round your answers to 2 decimal places.) Contribution margin per minute Given the tapping machine constraint, which product should be emphasized? 2. O Product C O Product D O Product E MacBook 80 ODO F3 F5 * $ 4 % 5. & 7 2 6 9
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