Gunst Company produces three video games Android, Bio Mutant, and Cyclops Cost and revenue data pertaining to each product are as follows At the present time, demand for each of the companys products far exceeds its capacity to produce them Thus, management is trying to determine which of its games to concentrate on next week in filling its backlog of orders Gunsts direct labor rate is $12 per hour, and only 1,000 hours of direct labor are available each week Determine the maximum total contribution margin the company can make by its best use of the 1,000 available hours Android Bio Mutant Cyclops S60 24 Selling price Direct labor Direct materials Variable overhead $100 48 $125 60 16 7 4

Question: Gunst Company produces three video games: Android, Bio-Mutant, and Cyclops. Cost and revenue data pertaining to each product are as follows: At the present time,

Gunst Company produces three video games: Android, Bio-Mutant, and Cyclops. Cost and revenue data pertaining to each product are as follows:

At the present time, demand for each of the companyâ€™s products far exceeds its capacity to produce them. Thus, management is trying to determine which of its games to concentrate on next week in filling its backlog of orders. Gunstâ€™s direct labor rate is $12 per hour, and only 1,000 hours of direct labor are available each week. Determine the maximum total contribution margin the company can make by its best use of the 1,000 available hours.

Android Bio-Mutant Cyclops S60 24 Selling price Direct labor . - Direct materials. Variable overhead.. $100 48 $125 60 16 - . - - 7 4

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