In Marshall Company, data concerning two products are unit contribution margin—P

Question

In Marshall Company, data concerning two products are unit contribution margin—Product A $16, Product B $18; machine hours required for one unit—Product A 4, Product B 5.

Brief Exercise 20-11 In Marshall Company, data concerning two products are unit contribution margin-Product A $16, Product B $18; machine hours required for one unit-Product A 4, Product B 5 Compute the contribution margin per unit of limited resource for each product. (Round answers to 2 decimal places, e.g. 0.1.) Product A Product B Contribution margin per unit of limited resource LINK TO TEXT

Explanation / Answer

Product A:

Contribution margin per unit of limited resource = $16 / 4 = $4

Product B:

Contribution margin per unit of limited resource = $18 / 5 = $3.60

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