Question: Computers Expertise Ltd provides three services, the details for which are as follows: BasicSecretarialExpert Sales price perunit$20$30$50 Variable cost perunit$10$12$15 (paper, transport, etc.) Labour time

Computers Expertise Ltd provides three services, the details for which are as follows:

BasicSecretarialExpert

Sales price perunit$20$30$50

Variable cost perunit$10$12$15

(paper, transport, etc.)

Labour time perunit1hour2hours5 hours

Annual fixedcosts$20,000

The demand for all service is unlimited. The ability to provide the service is limited by the availability of qualified staff and therefore the labour time available.

Which product is the most profitable?

a) Expert, because it has the highest contribution margin.

b) Secretarial, because it is the most pleasurable for staff.

c) Basic, because it provides the highest dollar contribution per labour hour.

d) Expert, because it has the highest sales price.

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