Cullumber Company has 9.200 hours of capacity and manufactures two products Product EZT takes 2 hours per unit, Product GLA takes 3 hours per unit. The contribution margin per unit for Product EZT is $9. The contribution margin per unit for Product GLAis $12. The demand for either product exceeds the factory capacity. Which product or products should be manufactured? (Round contribution margin to 2 decimal places, eg. 75.25)
Cullumber Company has 9.200 hours of capacity and manufactures two products Product EZT takes 2 hours per unit, Product GLA takes 3 hours per unit. The contribution margin per unit for Product EZT is $9. The contribution margin per unit for Product GLAis $12. The demand for either product exceeds the factory capacity. Which product or products should be manufactured? (Round contribution margin to 2 decimal places, eg. 75.25)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cullumber Company has 9,200 hours of capacity and manufactures two products Product EZT takes 2 hours per unit, Product GLA
takes 3 hours per unit. The contribution margin per unit for Product EZT is $9. The contribution margin per unit for Product GLA is
$12. The demand for either product exceeds the factory capacity.
Which product or products should be manufactured? (Round contribution margin to 2 decimal places, e.g. 75.25.)
Contribution margin $
Number of units
Product EZT
should be manufactured.
per hour
units
$
Product GLAT
per hour
units
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