Vaterways packages some of its products into sets for home installations. One set's (small) unit selling price is $75 with unit variable osts of $51. Another set's (large) unit selling price is $147 with unit variable costs of $101. The parts for the $75 set take 8 machine hours to produce. The parts for the $147 set take 20 machine hours to produce. Given the information above, and assuming all of the package sets produced can be sold each month, illustrate the best use of machine hours. (Round answers to 2 decimal places, e.g. 5.25.) Contribution margin per unit of limited resource Small Set Large Set
Vaterways packages some of its products into sets for home installations. One set's (small) unit selling price is $75 with unit variable osts of $51. Another set's (large) unit selling price is $147 with unit variable costs of $101. The parts for the $75 set take 8 machine hours to produce. The parts for the $147 set take 20 machine hours to produce. Given the information above, and assuming all of the package sets produced can be sold each month, illustrate the best use of machine hours. (Round answers to 2 decimal places, e.g. 5.25.) Contribution margin per unit of limited resource Small Set Large Set
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Waterways packages some of its products into sets for home installations. One set's (small) unit selling price is $75 with unit variable
costs of $51. Another set's (large) unit selling price is $147 with unit variable costs of $101. The parts for the $75 set take 8 machine
hours to produce. The parts for the $147 set take 20 machine hours to produce.
Given the information above, and assuming all of the package sets produced can be sold each month, illustrate the best use of
machine hours. (Round answers to 2 decimal places, e.g. 5.25.)
Contribution margin per unit of limited resource
The
is the best use of a limited resource.
Small Set
Large Set
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