Question: Please show your calculation! Which product has the HIGHEST contribution margin, as a percentage of selling price? Andrews's product Able, competing in the High-tech segment
Which product has the HIGHEST contribution margin, as a percentage of selling price? Andrews's product Able", competing in the High-tech segment sold 1,415,000 units. It had 376,000 units in inventory at the end of the round. Its per unit selling price was $25.00, and per unit material costs were $7.86, with labour costs per unit being $3.28. Per unit Inventory Carrying Costs were 12% of cost of goods sold Digby's product "Daze", also competing in the High-Tech segment sold 1,529,000 units. It had 504,000 units in inventory at the end of the round. Its per unit selling price was $24.50, and per unt material costs were $8.16 per unit, with labour costs per unit being $3.15. Per unit Inventory Carrying Costs were 12% of cost of goods sold a) Able b) Daze c) The contribution margin percentage for each product was identical
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