Alive Company sells two cosmetics products, Bright and Shine, with contribution margins per unit of $10 and

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Alive Company sells two cosmetics products, Bright and Shine, with contribution margins per unit of $10 and $14, respectively. Bright takes 2 hours to produce and Shine 3½ hours. The total machine hours available are 5,000 and fixed costs are $6,000.

a. What is the contribution margin per hour for each product?

b. To maximize profits, how many units of Bright and Shine should be produced?

c. What are the maximum profits for Alive Company?

d. You are provided with very limited information about the company and the situation. What are four other questions that you would ask before making the decision?

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Managerial Accounting

ISBN: 9780137689453

1st Edition

Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope

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