Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Dos $36.00 Unit sales...

 

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Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Dos $36.00 Unit sales Less variable cost: Direct material Direct labor Variable overhead Variable selling and administrative cost Total variable cost. Unit contribution margin Uno $12.00 $ 5.00 1.00 1.20 .80 $ 8.00 $ 4.00 $ 6.00 7.00 8.20 .80 $22.00 $14.00 Duo company's production process uses highly skilled labor, which is in short supply. The same employees work on both products and earn the same wage rate. Required: 1. Calculate the contribution margin per scarce resource for each of the products assuming an arbitrary time period for which direct laborers earn $1.00 per unit. 2. Which of Duo Company's products is most profitable? Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Dos $36.00 Unit sales Less variable cost: Direct material Direct labor Variable overhead Variable selling and administrative cost Total variable cost. Unit contribution margin Uno $12.00 $ 5.00 1.00 1.20 .80 $ 8.00 $ 4.00 $ 6.00 7.00 8.20 .80 $22.00 $14.00 Duo company's production process uses highly skilled labor, which is in short supply. The same employees work on both products and earn the same wage rate. Required: 1. Calculate the contribution margin per scarce resource for each of the products assuming an arbitrary time period for which direct laborers earn $1.00 per unit. 2. Which of Duo Company's products is most profitable?

Answer rating: 100% (QA)

To calculate the contribution margin per scarce resource for each product we need to determine ... View the full answer