ACCT ch 5 present Contribution Marginx ACCT eam 2 Flas New Tab Brooks Final Exam

Question

ACCT ch 5 present Contribution Marginx ACCT eam 2 Flas New Tab Brooks Final Exam ?e reladaptivelearningDashboardtjsessionid-7884E89C17861140DC60E84BDFL https://adaptive WilleyPLUS ORION Accounting. 5e Practice- Ch 19: Cost-Volume-Profit Analysis: Additonal Issues Q19.36: Game Day Company has 4,000 direct labor hours per month. The company produces a standarod entertainment center and a deluxe entertainment center. Data connected with each product are shown below Unit sales price Unit variable cost Direct labor hours Standard Deluxe $220 $280 120 160 Per unit 1.25 1.60 The contribution margin per direct labor hour is: x A standard Deluxe 60 75 B Standard Deluxe 75 80 C Standard Deluxe 80 60 D Standard Deluxe B0 75 NEXT

Explanation / Answer

Solution:

Calculation of COntribution Margin per Direct labor hour

Standard

Deluxe

Unit Sales Price

$220

$280

Less: Unit Variable Cost

$120

$160

Contribution Margin Per Unit

$100

$120

Direct Labor Hours Per Unit

1.25

1.6

Contribution Margin per Direct labor hour

(Contribution Margin per unit / Direct labor hours per unit)

$80

($100 / 1.25)

$75

($120 / 1.6)

Hence, the correct option is D) Standard $80 and Deluxe $75

Standard

Deluxe

Unit Sales Price

$220

$280

Less: Unit Variable Cost

$120

$160

Contribution Margin Per Unit

$100

$120

Direct Labor Hours Per Unit

1.25

1.6

Contribution Margin per Direct labor hour

(Contribution Margin per unit / Direct labor hours per unit)

$80

($100 / 1.25)

$75

($120 / 1.6)

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