oriolesfangrl
Feb 7, 2010, 08:52 PM
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
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