Vaughn Manufacturing's contribution margin is $20 per unit for Product A and $35 for ProductB. Product A requires 2 machine hours and Product B requires4 machine hours. How much isthe contribution margin per unit of limited resource for each product?AB$6.67$10.00$8.75$30.00$6.67$30.00$8.75$10.00

Formula to compute the contribution margin per unit of limited resources for each product.

Answered: Vaughn Manufacturing's contribution…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The constraint at Pickrel Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: 9. VD JT SM Selling price per unit Variable cost per unit Minutes on the constraint $344.85 $415.40 $119.32 $270.18 $310.88 $ 91.96 Sklpped 5.70 6.70 1.90 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your Intermedlate calculations to 2 declmal places.) Multiple Cholce JT, SM, VD JT. VD, SM VD, SM, JT SM, VD, JT Mc Graw < Prev 9 of 9 Next 68°F Mostly cloudy Type here to search DELL
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Edgewater Enterprises manufactures two products. Information follows: Product A Product B Sales price $ 12.00 $ 15.25 Variable cost per unit $ 6.20 $ 6.90 Product mix 30% 70% M6-17 [LO 6-6] es Required: Calculate Edgewater's weighted-average contribution margin per unit. Note: Round your intermediate calculations and final answer to 2 decimal places. Weighted average CM per unit
What is the expected added profit from the Challenger line ? Challenger Bikes Selling Price per Unit Materials Direct Labour Overhead (40% Variable) Total Per Unit Relevant Cost Estimated Additional Contribution Margin Estimated Sales Unit Estimated Increase in profit $39.80 19.6 9.8 (40%*24.50) $69.20 $92.29 $69.20 $23.09 25000 $577,250
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