Gisenberry Company provided the following information concerning two products: Contribution margin per unit-Product 12 ............................................. $23 Contribution
Question:
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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Related Book For
Cost Management Accounting And Control
ISBN: 101
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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