Toledo ManufactuFind theg Company Ltd products three X Y Z A

Toledo ManufactuFind theg Company Ltd., products three: X, Y, Z. A limitation of 240 labor hour per week prevents the company from meeting the sale demand these products. Product information is as follows: Determine the weekly contribution from from each product when total labour are allocated to the product with the highest Unit selling price. Unit contribution margin. Contribution per labor hour..

Solution

Since selling price is maximum for C:

we calculate for C

unit selling price : 210 $

unit contribution margin:30$

contribution per labour hour :6

weekly contribution from product : is 240 hrs/ 6 hrs =40

now 40 *(30)(Selling price - variable cost * number of hours spend)

=1200