Question: Ensign Company produces two products and selected data are shown below: Products 1 2 Selling price per unit $60 $50 Less variable expenses per unit

 Ensign Company produces two products and selected data are shown below:Products 1 2 Selling price per unit $60 $50 Less variable expenses

Ensign Company produces two products and selected data are shown below: Products 1 2 Selling price per unit $60 $50 Less variable expenses per unit 36 35 Contribution margin per unit $24 $15 Current demand per week (units) 2,000 2,200 Contribution margin ratio 40% 30% Processing time required on machine A1 per unit 3.00 min 1.50 min Machine A1 is used at 100% capacity. The machine has capacity of 2,000 minutes. What is the contribution margin per unit of the constrained resource for Product 2? $30 $10 $5 $15

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!