Can you please post the way you get the answerSolutionSoluti
Can you please post the way you get the answer!
Solution
Solution:
Weight Bench
Contribution margin per unit = $61 -$15 - $8 =$38
Contribution margin = Contribution margin per unit x units
= $38 x 5,800
= $220,400
Dumbbell Rack
Machine hours used in Weight Bench = units x machines hours per unit
= 5,800 x $0.8 = 4640 hours
Machine hours available for Dumbbell Rack = 6,000 - 4,640
= 1,360 hours
Units can be produced = 1,360 / 0.5 = 2,720 units
Contribution margin per unit = $50 -$20 - $4 =$26
Contribution margin = Contribution margin per unit x units
= $26 x 2,720
= $70,720
Total contribution margin = $220,400 + $70,720 = $291,120
