Managerial Accounting homework help?
the ibunez tool coopnay has two product: a plain circular saw and a professional circular saw. The plain saw sells for $70 and has a variable costs of $55. The professional saw sells for $100 and has a variable cost of $75.
1. compute contribution margins and contribution margin ratios for plain and professiona saws
2 the demand is for more units than the compnay can produce. There are only 20,000 machine hours of manufacturing capacity avialable. Two plain saws can be produced in the same average time ( 1 hours) needed to produce one professional saw. Compute the toal contribution margin for 20,000 hours for plain saws only and for professional saws only. Which product is the best use of machine hours?
3 use two or three sentences to stat the major lesson of this problem .