Division C also produces two product lines. Because the division can sell all of the...
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Division C also produces two product lines. Because the division can sell all of the product it can produce, Deisel is expanding the plant and needs to decide which product line to emphasize. To make this decision, the division accountant assembled the following data:
After expansion, the factory will have a production capacity of 4,900 machine hours per month. The plant can manufacture either 35 units of K707s or 56 units of G582s per machine hour.
please answer part 3b
3a. Identify the constraining factor for Division C. Division C's constraining factor is machine hours 3b. Prepare an analysis to show which product line to emphasize. K707 G582 Sales price per unit 5040 44 Variable costs per unit 1288 18 67 26 Contribution margin per machine hour Choose from any list or enter any number in the input fields and then click Check Answer. - Data Table Per Unit K707 G582 Sales price $ 90 $ 44 23 18 Variable costs $ 67 $ 26 Contribution margin Contribution margin ratio 74.4% 59.1%
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