Gisenberry Company provided the following information concerning two products: Contribution margin per unit-Product 12 ............................................. $23 Contribution

Question:

Gisenberry Company provided the following information concerning two products:
Contribution margin per unit-Product 12 ............................................. $23
Contribution margin per unit-Product 43 ............................................. $15
Machine hours required for one unit-Product 12 ................................. 2.5 hours
Machine hours required for one unit-Product 43 ................................. 1.5 hours
Instructions
Compute the contribution margin per unit of limited resource for each product. Which product should Gisenberry tell its sales personnel to 'push' to customers?
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Management Accounting Information for Decision-Making and Strategy Execution

ISBN: 978-0137024971

6th Edition

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

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