Question: i need an answer for question 6 (Total:10 Marks) Question 6 Ellizad Trading has the following production planned for the next two months. The figures
(Total:10 Marks) Question 6 Ellizad Trading has the following production planned for the next two months. The figures reflect the full capacity level of operations. Planned output is equal to the maximum demand per product Product Selling price Raw material cost Direct labor cost Variable overhead cost X RM per unit 150 24 60 RM per unit 200 56 80 18 z RM per unit RM per unit 150 130 22 40 20 24 18 30 24 Contribution margin per unit 42 46 74 52 Planned output 300 125 240 400 Direct labor hours per unit 6 8 3 2 It has now been identified that labor hours available in the next two months will be limited to 3,800 hours. Required: a) Calculate contribution margin per direct labor hour. b) Calculate total contribution margin earned for the optimal mix. (4 marks) (6 marks) (Total:10 Marks) 2
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