Product a has a unit contribution margin ucm of 200 and, Ask an Expert

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Product A has a unit contribution margin (UCM) of $200 and Product B a UCM of $100. Product A takes 10 hours to produce and Product B takes 2 hours to produce.

a. What is the contribution margin per hour for Product A?

b. What is the contribution margin per hour for Product B?

c. If the company has a limited number of hours available, which product should be produced first?

d. If the company has a 1,000 hours available and can sell a maximum of 300 units of Product A and 200 units of Product B, how many units of each could be produced?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9958414

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