Controller Incorporated produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour): Sales price (per unit) Costs (per unit): Direct materials Direct labor Variable factory overhead (@ $15 per DLH) Allocated fixed factory overhead (based on DLHS) Marketing expenses (all variable) Total costs Operating income (per unit) Multiple Choice Clash $ 300 $40. 76 55 80 30 40 281 $19 Slash $ 220 There is insufficient labor capacity in the plant to meet the combined demand for both Clash and Slash. Both products are produced through the same production departments. The contribution margin per unit for Clash is: 50 80 40 15 30 215 $5

Controller Incorporated produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour): There is insufficient labor capacity in the plant to meet the combined demand for both Clash and Slash. Both products are produced through the same production departments. The contribution margin per unit for Clash is: Mutiple Choice $40