Plato Corporation manufactures two products, Alpha and Beta. Contribution margin data follow.

Plato Corporation€™s production process uses highly skilled labor, which is in short supply. The same employees work on both products and earn the same wage rate.

Required:
Which of Plato Corporation€™s products is most profitable?Explain.

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Alpha $39.00 Beta Unit sales price Less varlable cost: $93.00 Direct material Direct labor Variable overhead Variable selling and administrative cost $21.00 3.00 3.75 2.25 $30.00 $9.00 $15.00 18.00 22.50 1.50 $57.00 S36.00 Total varlable cost Unit contribution margin