Company AAA makes three sizes of shirts. Small, med, and large, on one assembly line that has a limit of 600 labor hours per week .The company can sell all the shirts it can make under current operating capacity.

Determine the weekly contribution margin when all labor hours are alloted to the product with the highest:
Small Medium Large

Selling Price $8 $12 $15
Variable Costs 5 6 10
Labor-Hours 0.3 0.5 1.0
per shirt


a. unit selling price
b. unit contribution margin
c. contribution per labor-hour

About 90 minutes ago you posted the same question without the first paragraph which has been replied.

I would agree with morgaine300 about insufficient information especially what is the demand for each size of shirt? Obviously to concentrate only on one size that gives the maximum benefit is not a good business policy.

Yes, I've just now found this, after spending time answering your other thread. So you have posted twice, with different information. These threads can get totally separated and we will not know two exist. Keep everything in one place.

It still does not change what I said on my other post (i.e. I still see no labor costs with to figure contribution margin), but can be please keep this discussion all over here:
https://www.askmehelpdesk.com/finance-accounting/how-compute-unit-selling-price-444357.html