Gisenberry Company provided the following information concerning two products Contribution margin per unit Product 12 $23 Contribution margin per unit Product 43 $15 Machine hours required for one unit Product 12 2 5 hours Machine hours required for one unit Product 43 1 5 hours Instructions Comput...

Computation of the following Product 12 Contribution per unit ...

Gisenberry Company provided the following information concerning two products: Contribution margin per unit-Product 12 ............................................. $23 Contribution

Question:

Gisenberry Company provided the following information concerning two products:
per unit-Product 12 ............................................. $23
per unit-Product 43 ............................................. $15
Machine hours required for one unit-Product 12 ................................. 2.5 hours
Machine hours required for one unit-Product 43 ................................. 1.5 hours
Instructions
Compute the per unit of limited resource for each product. Which product should Gisenberry tell its sales personnel to 'push' to customers?
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...