Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour): Sales price (per unit) Costs (per unit): Direct materials Direct labor Variable factory overhead (@ $15 per DLH) Allocated fixed factory overhead (based on DLHS) Marketing expenses (all variable) Total costs Operating income (per unit) Clash $240 67 36 60 24 35 222 $18 Slash $168 31 60 30 12 24 157 $11 There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash. Both products are produced through the same production departments. In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?

Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour): There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash. Both products are produced through the same production departments. In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH