The answer is D. Neither A or B
Answer:
D
Explanation:
A B C
Contribution per unit 20 30 40
Machine hours per unit 2.5 3.25 4.5
Contribution per hour 8 9.23 8.89
Product B has the highest contribution per hour .
It is stated that the capacity is constrained by the number of hours the machine can run during a period . and all products produce will be sold. This has made the machine hour the determinant factor in the situation.
Therefore product B should be emphasized if the goal is to maximize contribution margin.
This would be called representative money because the token itself is worth money as well as the commodity <span />
Answer:
the variable cost is $4,025,000
Explanation:
The computation of the variable cost is as follows:
Given that
Sales units = 350,000 units.
Sale Price = $19.50.
Fixed cost = $1,225,000.
Pre tax income = $1,575,000
Based on the above information
Sale Value is
= 350,000 units × $19.50
= $6,825,000.00
Now
Contribution Margin is
= Sales - Fixed cost
= $6,825,000 - $1,225,000
= $5,600,000
And,
Variable Cost is
= Contribution margin - Pretax income
= $5,600,000 - 1,575,000
= $4,025,000
hence, the variable cost is $4,025,000
I don’t know if your supposed to use vocab or something but it would make you a responsible person in my opinion. Hope this helps:)
