ElecPlus Batteries has two different products, AAA and AA batteries The AA batteries have a contribution margin of $1 per package, and the AAA batteries have a contribution margin of $2 per package ElecPlus has a capacity for 1 million batteries per month, and both batteries require the same amount...

ElecPlus has a capacity of 1 million batteries per month it could be thought that said ...

ElecPlus Batteries has two different products, AAA and AA batteries. The AA batteries have a contribution margin

Question:

ElecPlus Batteries has two different products, AAA and AA batteries. The AA batteries have a of $1 per package, and the AAA batteries have a of $2 per package. ElecPlus has a capacity for 1 million batteries per month, and both batteries require the same amount of processing time. If a special order for 10,000 AAA exceeds the monthly capacity, should ElecPlus accept the special order?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...