Assume a company makes only three products, A, B, and C: Product A Product B Product C Selling price per unit Variable cost per unit Machine-hours per unit $ 90 $ 35 $ 65 $ 25 $ 45 $ 20 1.50 1.5 The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource is closest to:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume a company makes only three products, A, B, and C:
Product A
Product B
Product C
Selling price per unit
Variable cost per unit
$ 90
$ 35
$ 65
$ 25
$ 45
$ 20
Machine-hours per unit
1.50
3
1.5
The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource is closest to:
Multiple Choice
$82.50.
$55.00.
$36.67.
$56.00.
Transcribed Image Text:Assume a company makes only three products, A, B, and C: Product A Product B Product C Selling price per unit Variable cost per unit $ 90 $ 35 $ 65 $ 25 $ 45 $ 20 Machine-hours per unit 1.50 3 1.5 The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource is closest to: Multiple Choice $82.50. $55.00. $36.67. $56.00.
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