Required: 1- Calculate the contribution per unit for each product, and show which one is the most profitable for the company. 2- The fixed costs are allocated based on the units produced. Calculate the selling price per unit of each product to reach a profit margin of 15%. ( 3- The Company has a maximum working capacity of 815 labor hours. Labour hours are paid at a rate of $16 per hour. Show which production plan is most profitable for the Company.

Required: 1- Calculate the contribution per unit for each product, and show which one is the most profitable for the company. 2- The fixed costs are allocated based on the units produced. Calculate the selling price per unit of each product to reach a profit margin of 15%. ( 3- The Company has a maximum working capacity of 815 labor hours. Labour hours are paid at a rate of $16 per hour. Show which production plan is most profitable for the Company.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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