Spencer Company manufactures and sells three products. Relevant per-unit data for each product follow:

Instructions
(a) Calculate the contribution margin per unit of the limited resource (machine hours) for each product.
(b) Assuming 1,500 additional machine hours are available, determine which product should be manufactured.
(c) Prepare an analysis that shows the total contribution margin if the additional hours are (1) divided equally among the products, and (2) allocated entirely to the product identified in part (b) above.

Transcribed Image Text:

Product A BC S9 12 $14 $3 9.50 $12 Selling price Variable costs and expenses Machine hours to produce