1 Contribution Margin with Resource Constraints CyclePath Company produces two different products that have the following price and cost characteristics mo Tricycle Bicycle 200 100 Selling price per unit Variable cost per unit 120 Management believes that pushing sales of the Bicycle product would maximize company profits because of the high contribution margin per unit for this product. However, only 50,000 labor hours are available each year, and the Bicycle product requires 4 labor hours per unit while the Tricycle model requires 2 labor hours per unit. The company sells everything it 8 produces. 10 Required: 11 a Calculate the contribution margin per unit of constrained resource for each model DL Hours Available Bicycle Tricycle Total Sales Required: 1a Calculate the contribution margin per unit of constrained resource for each model DL Hours Available Bicycle Tricycle Total Sales Less: Variable Contribution Margin NNNNN Hours needed CM per constrained resouce Which model would CyclePath prefer to sell to maximize overall company profit? Explain. hq[it09 9