Refer to the data in PE 22-10. Product A requires two units of the companys critical resource,

Question:

Refer to the data in PE 22-10. Product A requires two units of the company’s critical resource, while Product B requires three units. Compute the contribution margin per unit of critical resource to determine which product the company should emphasize in its marketing campaign.

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...