Handy Andy Company has limited direct labor hours of 4,000 hours per month for its employees. Handy Andy manufactures a standard entertainment center and a deluxe entertainment center. The standard and deluxe units have the following information:
|
Deluxe |
||
|
Unit Data |
$220 |
$280 |
|
Selling price |
120 |
160 |
|
Variable costs |
1.25 |
1.6 |
The contribution margin per unit of limited resource is:
|
Standard |
Deluxe |
|
|
75 |
80 |
|
|
80 |
75 |
|
|
60 |
75 |
|
|
80 |
60 |